Post-Brexit Investment Advice | Residents in France with British Pensions

Brexit 

Your rights as a French Resident are protected under the UK’s Withdrawal Agreement and you will be able to hold a French Residency Card (Carte de Séjour), and this card will grant you permanent residency in France for the rest of your life.

British Pension after Brexit

You should probably take local tax advice before taking your UK pension The lump sum in not tax free in France, as it is in the UK. And, lump sums are treated differently than a regular income when it comes to paying tax in France

‘Pension aggregation’ should continue for those that have worked in different EU states and contributed to different social security schemes.

Brexit pension advice in France

Before taking advice on British pension products in France, you really need to check if the advice firm has access to the UK pension providers (in other words, will they deal with the firm?). If not, it is likely you will be recommended an often unnecessary transfer to another product that may be more expensive- the UK does offer very competitive pensions compared to many products in the EU. If the advice firm does not hold ‘terms of business’ with your current provider in the UK, then how can they become your adviser for this product? Bear in mind, financial firms cannot sell their services into France unless they obtain local licences in an EU/EEA country due to EU passporting.

EU passporting?

EU passporting enables financial firms in the EU/EEA to provide financial services to investors in other EU/EEA countries. The Aisa Group has a regulated advice firm in France, the UK and the Czech Republic which together provides coverage for regulated advice in Europe(incl the UK).

UK pensions for residents in EU/EEA states going forward?

MiFID rules for the EU do not actually cover pensions at all. In fact, given the UK requirement to achieve a professional level standard of qualifications it is far more likely that a UK based firm will be better placed to understand your UK pensions and advise you accordingly on the pensions- note they will need professional Indemnity Insurance to cover UK pensions advice outside of the UK.

Are QROPS suitable for residents in France?

QROPS are recognised overseas pension schemes that can accept transfers from UK registered pensions and most are created using trusts. Trusts are not recognised in France and so additional tax advice should be taken before considering a transfer.

Is moving a  QROPS back to a UK pension a good idea?

Many QROPS transfers were totally inappropriate and are significantly more costly that a UK equivalent that holds clean lower charged funds. In these cases, it may be worth considering.

If you have £150,000 or more in your pension or investments, our award-winning advisers can:

Provide information on your options, including comprehensive knowledge of French and UK products.

Explain why you should consider retaining your UK pension.

Advise on which products are suitable if a transfer is recommended.

Help you avoid large transfer charges and unnecessary taxes after Brexit.

For more information view our video or obtain our brochure written by dual-regulated expert advisers.

Brexit does not mean the end to quality accessible advice.