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carmel bourne


Dear Des,
I pay tax in England on the Employment support allowance I get as someone who is chronically ill and likely to be so for the rest of my life. Do I have to declare this? If so is it subject to the double taxation treaty? It looks to me as if I should be paying taxon it in France but tax on it is automatically deducted at source by the UK government. I have an S1 form so I know that I am not subject to social charges.

by carmel bourne on 15 Jul 2016
Des Cooney

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Dear Carmel,

Thank you for your question. As a French resident you are taxable on your worldwide income in France. To avoid confusion it is best to refer to the UK / France Double taxation Treaty. The Treaty is set up to ensure that you do not pay tax twice on any income. However, the global amount is needed in order to calculate the rate at which income should be taxed (if at all) in France.

If you have Form S1, you are not liable for social charges on disability income received from outside of France. This is because your health costs are covered from your home country through the use of the S1 form. Please approach this issue with care as the law covering the matter is frequently misunderstood by local French tax officials.

I hope that this helps.

Des Cooney

by Des Cooney on 21 Jul 2016
carmel bourne

Follow up Question:

Hi Des
Are you able to clarify a couple of issues in relation to the UK
personal allowance on UK pensions for french residents?.
I have a UK local government pensions for which I have been receiving
the personal allowance and paying Uk tax on everything above this
amount. I know that the french will give me a tax credit equal to the
tax payable in France on this amount; My husband has a small UK
pension less than the UK tax allowance. We have mistakenly been
declaring this in England not in France and are now in the process of
putting that right; We have read that we are entitled to the UK
personal allowance when paying tax on our pensions in France. I am
having difficulty understanding this. The relevant UK tax form R43
seems to indicate that we will be given a sum of money by the UK tax
authority but is this so in relation to our two cases?

by carmel bourne on 25 Jul 2016
Des Cooney

This expert is currently inactive and not able to take new questions!


Dear Carmel,

Thank you for your enquiry.

Tax on government service pensions is only payable in the UK regardless of the country of residence. The government pension still needs to be declared in France. Although it is not taxable, it is taken into account when determining the rate of tax payable on your other income. Local tax offices will include government service pension income when calculating your social charges for the year.

You will receive your normal UK personal tax allowance against your government service pension. If you/your husband are also in receipt of a State retirement pension from the UK, this will be taxed in France. Thereafter you will also benefit from the allowances granted in France on this pension to someone who is retired.

The situation can become complicated in that individual French tax offices often take different stances on the issue. This is a grey area, as some people are charged, whilst others are not. However, the wording of the double tax treaty suggests that social charges should not be payable on government service pensions.

For further information, you should consider contacting the HMRC Centre for Non-Residents on 0044-151 210 2222 from outside the UK, or 0845 070 0040 from with the UK.

by Des Cooney on 04 Aug 2016

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