1Cash

Hi everyone, thank you for accepting me. Really grateful to have this opportunity to share our experiences and tips. So here's my first request for advice.

I am aged 66, residing in france 7 years and have a just one smallish UK private pension that has matured. The provider says I have the choice to do nothing and leave it sitting there or transfer it all out. My quandry is that if I leave it untouched - there is no gain at all for me. If I transfer it out, the 3 IFAs I have spoked to all recommend putting the whole pot in a SIPP. which I am not entirely happy to do as
1. Their fees seem excessive
2. My investment is not guaranteed - even the capital itself could diminish or be lost

Can someone point me towards a safe and good value home for my UK pension pot, ideally with minimum tax liaibility ?

Thanks

cyrian

Hi 1Cash
Welcome to the forum.
I am a bit confused with what you say.
A private pension doesn't mature - you can access it normally after the age of 55.
The advice you need will depend on the size of your pension pot and what your other earnings (State pension etc) are.
In the UK you would normally be entitled to 25% of the value of a pension pot as tax-free cash - but this is not tax-free in France.
Have a look at a) AJ Bell b) Hargreaves Lansdown c) Fidelity International who are low cost SIPP providers.
IMHO you would need around £60k to invest in a SIPP to allow you to have a good spread of investments.
My SIPP has risen by 6.5% since January. It is unlikely you will get anything close to that elsewhere.
I have had my SIPP since 2009 and it has doubled in value since then.
A pension pot is a long-term investment and the only issue is if you need to access cash when the market is depressed.
With a SIPP, you only pay tax on a) interest and b) dividends you receive which is not usually a significant amount of tax and also you pay income tax on any money you withdraw.
You don't say if you are married but if you are then you are taxed as a family which may reduce your tax liability.
HTH

1Cash

Thank you, Cyrian. Will look this evening at the provider names you gave me. Would you recommend your own SIPP provider? I am 66 years old and considering doing this 60k+ transfer as a 20 years investment.
Before doing anything, I will also have to check how the France tax system treats SIPPS. Much appreciate your advice,

cyrian

Yes - The problem is that financial structures don't translate between countries.
Normally SIPPs are written in Trust in the UK and I don't think that UK Trusts are recognised in France.
UK accountants and IFAs cannot generally advise you in cross border finances.
The same applies to French accountants (don't think IFAs exist in France).
Firms like Blevins Franks offer financial advice across both UK and French tax regimes.
They provide advice to readers questions in The Connexion and there are similar services in some expat magazines.
It may be worth considering just taking a regular income from your fund which would be tax free in the UK if you get a non-resident certificate from HMRC.
You would declare the income in your French tax return and invest any surplus money in France (perhaps an assurance vie?)
HTH

1Cash

Not the first time, Cyrian, I have heard Blevins Franks recommended, so may well speak with them. Thanks again.

Tweedpipe

Not sure how accurate THIS post is but you may wish to make a note of the comments.

1Cash

Appreciate the posy-link, Tweedpipe.