# UK Military Veteran



## jonallan123 (Jan 18, 2018)

Hello

I am hoping someone can offer me some advice on a particular unique situation. I am looking to relocate to France with my girlfriend, hopefully within the next few years. The one thing I need clarification on is the French tax on my income.

I am in receipt of two benefits from the UK for my military service, I was injured in Iraq where I lost my left arm. I have an Armed Forces Compensation Scheme Guaranteed Income Payment (AFCS GIP) and an Armed Forces Independence Payment (AFIP) these relate to my disability, both are tax free, no tax is deducted, my tax code is NIL. I am wondering if France will honour this agreement and not take the relevant income tax off my NET figure or if I will have to pay tax on both or one of my income streams?

Many thanks

Jon-Allan


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## JustLurking (Mar 25, 2015)

jonallan123 said:


> I am in receipt of two benefits from the UK for my military service, ... these relate to my disability, both are tax free, no tax is deducted, my tax code is NIL. I am wondering if France will honour this agreement ...


The depths of the UK/France tax treaty would I think be the first place to look.

Reading and parsing treaties is often fiddly and headache-inducing (the only one I'm really familiar with is the US/UK one, for my own circumstances), but there is a (surprisingly!) clear statement in Article 19 para 4(b) that looks to me like it should apply to the payments you describe:


> the pensions referred to in section 641(1)(a) to (g) of the Income Tax (Earnings and Pensions) Act 2003 and benefits paid by reason of illness or injury following the termination of service in the armed forces or reserve forces referred to in section 641(1)(h) of the Income Tax (Earnings and Pensions) Act 2003 and injury and disablement pensions payable under any scheme made under the Personal Injuries (Emergency Provisions) Act 1939 _shall be exempt from French tax_, regardless of the nationality of the pensioner, _so long as they are exempt from United Kingdom tax._ However, paragraph 2 shall apply to such part of any income from those pensions as is not exempted from United Kingdom tax.


The emphasis here is mine. You should probably make certain that your payments meet the criteria listed above (I know nothing about this area). If not, para 2 of the same article is more general-purpose with respect to pensions and seems like it may also suffice; its gist is: UK government pensions are not generally taxable to France.

Disclaimer: I'm just some random bloke on the internet who has spent far more time than is healthy trying to understand tax treaties in order to solve his own international tax dilemmas, and interpreting treaties is no part of my job and never has been. So please take this as the suggestion of a rank amateur and not rock-solid advice.

With that, then, good luck with your move. It sounds exciting!


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## jonallan123 (Jan 18, 2018)

Thanks for taking the time to respond. Really appreciate your answer and as rank amateurs go it was particularly accurate and surprisingly more than a 'relocation finance specialist' was able to muster! 

Don't worry we wont name you personally should the tax man ever come knocking! Your painful treaty deciphering will hopefully aid us in our impending pursuit of a quiet life! Thanks again.


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