Declare company pension scheme investment policies?

Debra
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Declare company pension scheme investment policies?

Post by Debra »

I know you have to declare when doing your tax return any assurance vie policies and all bank/investment accounts but I didn't think you had to declare pension scheme investments, or at least while they're still not accessible. Someone just posted elsewhere that we do have to declare them. I have four policies that were attached to my company scheme: two which were money purchase investments that went in and out of various buckets and are now in an insurance company investment policies, another that was for AVCs and one that was for contracted out SERPS contributions. I can't access them yet and I thought I didn't need to declare them but would just declare them at the time I accessed them, whether it was as a lump sum or drawdown or whatever.

Should I have declared them as assurance vies? (They're not really, in my view, but I'm worried I've been wrong!)

Nomoss

Re: Declare company pension scheme investment policies?

Post by Nomoss »

I think that if any profit or income is produced by the investment, and reported to you by the company as a distribution, even if reinvested, the account and the distribution should be reported.

Debra
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Re: Declare company pension scheme investment policies?

Post by Debra »

Yes but if they're just invested pension funds, not accessible yet and so distributing nothing to me? They grow within the policies but I can't access the funds at all until age 55 and the actual pension age on them ranges from 60-65.

Nomoss

Re: Declare company pension scheme investment policies?

Post by Nomoss »

I took the view that if my statements include advices of distributions, as they do, that infers that the reason is that they would be liable to tax as income in the UK (which I don't pay, but the computer doesn't know that), and therefore liable in France, even if reinvested.

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Re: Declare company pension scheme investment policies?

Post by bubbles1 »

Why not just ask your local tax office ? Or you can contact the UK Revenue to ask them also about being subject to tax in a closed system, I have found them very helpful in the past, both here in France and the UK.
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Re: Declare company pension scheme investment policies?

Post by Debra »

Yeah I'll try. Just not sure how to explain it. Do they have the equivalent of a money purchase pension scheme in France?

I won't be impressed if any gains within the scheme are taxable as that's the whole point of not only leaving it invested but not being able to get it out until a certain age and it being taxable when you start to draw on it.

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Re: Declare company pension scheme investment policies?

Post by bubbles1 »

I will PM you
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Re: Declare company pension scheme investment policies?

Post by Archy »

Hope this is of some help as I had the same thought some weeks ago and I totally confused myself as I was thinking would it be shown as investment income even though it's a PPP as it wouldn't go in the pension box cos I'm not in receipt of any pension income from it and so I wrote to The Connexion which I know some of you would say take with a pinch of salt but here is what I sent and the reply that I received. I have also included a bit at the end from The Connexion dated 25/4/18.

Subject: Personal Pension Plan include on 3916?
Hello Connexion,
I would like to know if I should include on my form 3916 the following:-
A Personal Pension Plan that I have with !!!!!!. It is a very small amount invested that I have never contributed to (but which has grown a little and decreased a little through the years) through contracting out as an employee giving up my right to additional state pension ie Serps.
I would be very grateful if you could let me know if I should be including this on my 3916 or not.


Hello
The information we’ve had from tax experts previously is that it’s not necessary to include private pensions on this form.
Best regards
The Connexion Team

The Connexion
www.connexionfrance.com
From: contact
Sent: 20 March 2018 10:15


UK pension plans and French tax return?

WITH regard to my tax declaration, I have a Personal Pension Plan that I have with Standard Life UK. Do I have to include this on my 3916 form?

No, you do not need to include pensions – private or otherwise – on the 3916 form; the 3916 is for declaring the existence of foreign bank accounts and investments such as foreign assurance vie policies. Of course once you draw a pension from such a plan the income is declarable on the 2047 and 2042 income declaration forms.

Reader's query answered by Hugh MacDonald

The information here is of a general nature. You should not act or refrain from acting on it without taking professional advice on the specific facts of your case.
No liability is accepted in respect of this article. It is intended only as a general guide. Nothing herein constitutes actual financial advice.

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Re: Declare company pension scheme investment policies?

Post by SW31girl »

That is also my understanding which was confirmed by my accountant in France. If the investments all arose from pension benefits while working you do not declare the investments - you only declare the actual amount you take as pension income, for example from a pension drawdown. Also you only have to declare any AV contracts from non French entities, not those taken out with a French entity; obviously you have to declare income from all AV’s but that’s a different subject.

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Re: Declare company pension scheme investment policies?

Post by Debra »

Thanks everyone - I can now stop panicking that I've not been declaring correctly :)

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