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Old 05.01.2020, 13:51
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2e pilier lump sump withdrawal, UK and Brexit

Hi all,

We are in the process of planning our move back to the UK. We would ideally like to obtain a payment of 100% of our 2e piliers in order to manage our retirement investments ourselves once back in the UK. In theory such a withdrawal might be possible once the UK is no longer an EU member state (currently only the non-obligatory part can be obtained when moving to an EU member state), but right now of course I don’t know what the final Brexit agreement will be.

One of my main questions concerns taxation of the 2e pilier lump sum. We live in France currently and this complicates the process since France will remain an EU member state. We’re wondering whether it would be better to move to Switzerland before leaving, thus removing the “EU member state” intermediate step and simplifying the process.

Any thoughts?
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Old 05.01.2020, 15:51
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Re: 2e pilier lump sump withdrawal, UK and Brexit

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Hi all,

We are in the process of planning our move back to the UK. We would ideally like to obtain a payment of 100% of our 2e piliers in order to manage our retirement investments ourselves once back in the UK. In theory such a withdrawal might be possible once the UK is no longer an EU member state (currently only the non-obligatory part can be obtained when moving to an EU member state), but right now of course I don’t know what the final Brexit agreement will be.

One of my main questions concerns taxation of the 2e pilier lump sum. We live in France currently and this complicates the process since France will remain an EU member state. We’re wondering whether it would be better to move to Switzerland before leaving, thus removing the “EU member state” intermediate step and simplifying the process.

Any thoughts?
It's currently possible if you return to the UK providing you are not subject to compulsory insurance. Are you required to be compulsory insured in France?
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Old 05.01.2020, 16:02
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Re: 2e pilier lump sump withdrawal, UK and Brexit

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It's currently possible if you return to the UK providing you are not subject to compulsory insurance. Are you required to be compulsory insured in France?
Hi.

Upon leaving my job in Switzerland I would not take up employment in France (thereby not being subject to compulsory insurance I believe) before leaving France for the UK, after the "solde de tous comptes" with the French fisc.

In the UK I would take up a new job and be subject again to compulsory insurance.
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Old 05.01.2020, 16:18
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Re: 2e pilier lump sump withdrawal, UK and Brexit

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Hi.

Upon leaving my job in Switzerland I would not take up employment in France (thereby not being subject to compulsory insurance I believe) before leaving France for the UK, after the "solde de tous comptes" with the French fisc.

In the UK I would take up a new job and be subject again to compulsory insurance.
So why did you not take your pension in FULL when you went to live in France or whilst still resident & not subject to insurance? You only need to fill in a form to get the funds released..........
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Old 05.01.2020, 16:37
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Re: 2e pilier lump sump withdrawal, UK and Brexit

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So why did you not take your pension in FULL when you went to live in France or whilst still resident & not subject to insurance? You only need to fill in a form to get the funds released..........
I'm still working in Switzerland as a frontalier at the moment so that's not an option.

These are plans for the future, once I've got to grips with the whole tax situation, decided to leave my job for a new job in the UK, etc. Also, in France, if you are no longer affiliated to the CMU as a frontalier then it seems the French take not only a 6,75% tax on the 2e pilier lump sum but also a 9% contribution on top.
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