British retirees in France hit with surprise pension tax bills despite treaty

The UK–France Double Taxation Convention has shielded Government pensions from both income tax and social contributions in France since 2010. But French tax officials argue the bills are justified because some retirees do not hold an S1 healthcare certificate.

The S1 form lets British state pensioners access French healthcare funded by the UK, but it is only available once someone reaches state pension age. That leaves many early retirees caught out by the sudden charges.

Government pensions have traditionally remained outside French tax jurisdiction according to the bilateral agreement between the two nations. Yet multiple British retirees who previously worked in the public sector have received initial demands for social security contributions this year.

French officials have defended these charges by highlighting that the pensioners lack S1 forms. The authorities appear to be disregarding the treaty's Article 19 provisions that specifically protect government pensions from such levies.

The situation has created significant financial strain for retirees who had planned their finances based on the longstanding exemption.

Many affected individuals worked as teachers, teaching assistants and police officers before relocating to France.

Andy Pickwick, who served as a police officer before moving to southern France in 2020, has contested the charges alongside his wife, a former teaching assistant.

Despite their appeals, French tax officials rejected their arguments.

"The tax office said we have to pay because we do not have an S1. I said we don't need it because they are government pensions, under the Double Taxation Convention's Article 19. They think we're not paying for health cover anywhere," Mr Pickwick, 60, told the Connexion.

He has established a Facebook community where numerous retired British expatriates report receiving social security bills for the first time.

Mr Pickwick revealed in August that an accountant warned him that paying the General Social Contribution could disqualify him from receiving an S1 upon reaching state pension age.

"My accountant's only advice was to take out private health cover. I'm seriously considering selling our house and going back," he wrote in the Facebook group.

French tax officials informed Mr Pickwick that his police pension qualified as a pre-retirement benefit, placing it beyond double taxation protections.

Mark Taylor, another retired police officer, faced a €3,500 (£3,020) demand in 2023, describing it as "quite a hit".

While Mr Taylor won his appeal, he noted that "it appears that people in other departments have not had their appeals upheld".

There were an estimated 137,508 British nationals living in France in 2021, according to French statistics body Insee.