International SIPP France

An International SIPP (Self-Invested Personal Pension), also known as a Non-Resident SIPP, is the go-to retirement savings product if you now live in France. As a French resident, it offers greater flexibility, a wider range of investment options, potential tax advantages, and the ability to choose your preferred currency.

What is an International SIPP?

An International SIPP is a UK-based pension scheme designed for expatriates and non-residents who want to manage their UK pension while living abroad. It allows you to access your pension funds and provides greater flexibility and control over investments compared to traditional pension plans.

SIPPs for Expats in France

If you are living in France, an International SIPP enables you to transfer and consolidate benefits from UK-registered pension schemes while remaining protected under UK regulations.

With flexible-access drawdown, you can access your pension to best suit your income requirements. This includes regular income or ad hoc withdrawals and lump sums. Unlike many UK pensions, there is no obligation to purchase an annuity or encash the full pension fund in one go.

An International SIPP also allows expats a wider investment choice, including access to funds in multiple currencies, ensuring greater financial flexibility while still complying with Financial Conduct Authority (FCA) regulations in the UK.

International SIPP vs QROPS Qualifying Recognised Overseas Pension Schemes vs French SIPP

Following the Chancellor's October budget in 2024 and the removal of the Overseas Transfer Charge exemption for EEA countries and Gibraltar, any French resident transferring their UK pension to a QROPS will incur an overseas transfer charge of 25%. This is of the total pension fund value.

Needless to say, this negates any of the benefits previously incurred in utlising a Maltese or Gibraltar-based overseas pension scheme.

The International SIPP is, therefore, the only suitable solution available. For clarification, whilst France has various pension solutions, none are recognised by HMRC. As such, you cannot transfer your UK pension to France, and there is no French SIPP by UK standards.

FAQs

  • No tax is applied as long as your money stays within the SIPP. This includes any capital growth or income. Withdrawals from a SIPP are considered pension income in France and are subject to French income tax in line with the progressive tax rates.

    Pension income is generally subject to social charges in France; however, if you hold an S1 certificate, you may be exempt.

    In the UK, you can take a 25% tax-free lump sum from your pension. In France, this lump sum is not tax-free and is subject to French taxation. You can opt for a fixed tax rate (prélèvement forfaitaire) of up to 15% on lump-sum withdrawals. It's essential to seek advice from a French tax adviser to understand the implications fully.

  • Not necessarily. Due to the double tax treaty between the UK and France, via an NT code, you can withdraw pension income free of UK tax.

  • There are many expat SIPP providers. We would recommend the most suitable solution once we have understood your position and requirements. We consider key areas such as cost, service, investment choice, safety and security, and reputation.

  • Having considered the above, our current preferred International SIPP provider is the Novia Global UK SIPP.

  • Yes, we are completely independent and not affiliated with any product provider or investment manager. We do not accept commissions or incentives of any kind, ensuring full transparency from the outset.

    We provide specialist expat financial advice and wealth management services to British expats throughout France.

    We specialise in cross-border financial planning, implementing bespoke investment portfolios for our clients' objectives and needs. Our advisers are dual-qualified in both the UK and France and have a minimum of 10 years of professional advisory experience.

  • No, unless you qualify under special circumstances (e.g., serious ill-health). From 2028, the minimum pension age is increasing to 57.

  • You can invest in Stocks & Shares, ETFs & Mutual Funds, Bonds (Government & Corporate), Alternative Investments (REITs and commodities), and index-tracking funds in multiple currencies, including GBP, Euro and US

  • Yes, existing UK pensions (defined contribution schemes, including workplace pensions and personal pensions) can be transferred into an International SIPP. However, defined benefit (final salary) schemes will need to adhere to additional processes in line with UK pension legislation.

  • Currently, if you die before 75, beneficiaries can inherit the pension tax-free. If you die after age 75, beneficiaries pay income tax at their personal rate on withdrawals. However, following the Chancellor's October 2024 budget, this will change in 2027. There are, however, strategies that can be implemented to mitigate this.