British Pensioners in Europe and beyond - An Analysis.

British Pensioners in Europe and beyond – An Analysis.

The emigration of pensioners to Europe and beyond.

 The countries coloured Blue are in the EU.  Those without star *  have pensions frozen at the time the recipient emigrated.  

Of  the 12,955,300 Citizens who receive the UK State Pension, by 2015 - 1,230,390 live outside the UK. That is 9.5%. 

QUESTIONS………………….

1. Why do the pensioners emigrate? 
2. Why has the numbers generally flattened off since 2011?
3. Is this emigration of advantage or not to the British Economy?
4. What are the advantages or disadvantages to the pensioners in emigrating?
5. Why have the numbers in Pakistan and Jamaica fallen so much?
6. And why have they fallen in Australia and Canada and South Africa?  - And Italy?
7. Why have the numbers risen so much in N.Z., Ireland and France between 2008 - 2014? Why the increase to India – a frozen pension country?

Suggestions for the answers – derived from anecdotal evidence.

1.  Why do the pensioners emigrate? 

            It varies –

Often the housing costs are considerably cheaper.  (Much of Europe,)

Some are joining children who have previously emigrated. (Australia, Canada)

Some are returning to the land of their birth. (India? Jamaica? Ireland? )

Summer weather/climate is drier and warmer  (Much of  Europe)

The countries of retirement are English Speaking  (Ireland, N.Z. etc)

There is more space and a less hectic way of life (Much of Europe).

The desire for new adventure while there is still time -- 

Exposure to a different culture ,and, learning a new language, broadening experience

Some dislike of changes in the UK, especially any which restrict their lives.

2. Why has the numbers generally flattened off since 2011?

The threatening approach of a possible Brexit? (All Europe curves). The Times journal 29/03/16 reports that ‘a hundred a day are returning to the UK from Spain’.

See also Italy q.7 below. Austerity?

Remembering that everyone has a certain life-span.  The increase in numbers represents additions minus deaths.  It is likely that a ceiling in the curve of those emigrating would be reached. However note the countries where the %’s fall.
Further a slight addition could be of those who have achieved pensionable age whilst living abroad.

3.  Is this emigration of advantage or not to the British Economy?

.Positive  - The pensioners do not use the physical facilities of the NHS, even though those in Europe get some payment of their medical care.  Those far from Europe get no support.

They free up some housing stock.

They do not use the free bus passes and TV licences which saves money.

Many have UK based investments, benefiting the economy, and could and would  do so more if the UK Government made it easier.

Negative – Their pensions are not all spent in the UK economy.

4. What are the advantages or disadvantages to the pensioners in emigrating?

Positive – as listed generally in answer to 1.

Negative – Lack of any voice at all at the political level – leading to no voice in the manner and use of UK investments.

A feeling of almost total neglect or lack of interest in them by the British Government.

In certain countries the pension falls in value year by year as it is frozen.

5. Why have the numbers in Pakistan and Jamaica fallen so much?

Possibly the standard of living and Governance of these countries is a problem. Pakistan also has a frozen pension regime.

6. And why have they fallen in Australia and Canada and South Africa?.

The freezing of the State pension is a very likely cause.

And Italy?  Uncertain – The fears of a Brexit seem most likely.

7. Why have the numbers risen so much in N.Z., Ireland and France between 2008-2014?

N.Z. provides pensions which supplement the frozen UK pension and it is a very ‘English’ country.

Ireland is almost certainly the birth-land or ancestral land of many UK State pensioners. It has more space and in many ways is so similar to England.

France is adjacent to England and there is easy access to family and friends, within a short time travel.

India has a steadily rising economy, but is at present an economical country. It has little religious friction, and would be attractive to retiring ‘British’ Indians, who have done well in the UK.

Postscript –  It can be argued that it is in the interest of the British economy to encourage the pensioners to retire abroad (q.v. 3 above).  It is unfortunate that the Government puts difficulties in their way with regard to investing in British enterprises, and financial institutions. Many (especially in the EU) buy goods from the UK.

The figures are all derived from published Government Statistics on the State pension.

The United Kingdom Taxation and the Expatriate.

To the Index and beginning click here

Her Majesty’s Revenue and Customs [HMRC] have released a consultation document which would if implemented create financial hardship for quite a few British Citizens who live abroad.

It can be read at -  goo.gl/Jj5D2j

The thought behind this is to remove the tax-free personal allowances on income which arises in the United Kingdom paid to Citizens abroad.

It has two errors.

It assumes that  tax credits granted in any State of residency will completely offset the tax paid in the UK. It also seems to assume that the UK sourced income is not significant to the recipients.  How wrong they are.

The Double Taxation Conventions

Attention must be drawn  to the misleading wording in the paper .

Section  6.2  states : –

However most of these individuals would be able to claim relief overseas either in the form of a credit for tax paid in the UK or exemption from tax in their home state.# Therefore most individuals would not generally pay more tax overall than they do now***. However this will depend on the relative level of tax rates and allowances between the UK and their country of residence.

# if the taxpayer specifically claims under a double taxation treaty!

***This Statement is sending/implying false information-  Under the French/UK  Double Taxation Convention (and indeed most others) the tax relief on tax paid in the UK IS NOT the actual tax paid but the tax that would have been paid if the income had been taxed in France.  As it is, those who have their pensions taxed ‘only’ in the UK are quite clearly disadvantaged##.  Such disadvantage would be very greatly exaggerated for other recipients of private pensions, earned income, rents etc. from the UK  if the personal allowance were removed. It is extremely unlikely that the tax credit given against a French Tax demand on world-wide income, in respect of tax paid in the UK is ever equal to the tax paid in the UK.

Thereby any resident who pays tax which would fall under a Double Taxation Treaty would lose out, because of the different levels of tax regime. The removal of the Personal Allowances would exacerbate this.

##The elderly expatriate in France who receives all their income from the UK, the majority of which in taxed in the UK is currently disadvantaged because any tax credits achieved in France [e.g for home helps – charitable support] cannot be set against the taxes paid in the UK, but only against a minimal tax liability in France.  They therefore pay a bundle of tax to the UK , none to France, and overall far more than if they were only taxed in France on all the income.

The Nature of the Citizen Abroad and the importance of this income.

HMRC need awareness of the nature of the citizen abroad especially in the EU.

Many citizens who live in other States of the EU are ordinary folk.  They may have retired on little more than the State pension. Some (perhaps many) have retained a property in the UK and rented it out to get an income.  They retain the property just in case they need to return to the UK at a later stage in life.

This rent on their property is important to them.  It could well exceed 40% of their income Let us say that it brings in £10,000 a year.  If the tax-free personal allowance is removed the tax authority will take £2,000 and their income is reduced to £8,000.

These citizens are just ordinary folk who I fear do not understand the taxation system and its convolutions.  I am aware that many still have their State pensions taxed in the UK although they could get them ‘exported for tax purposes’.  The same is true of  Bank interest.  They could request the Bank to pay the interest gross so that it avoids UK tax.  Neither HMRC nor the Banks tell them how to do this.  Some Banks are reluctant or refuse to pay the interest gross.  The average taxpayer badly needs simplicity and guidance. It is already apparent that various non-residents have only a superficial grasp of where they should be paying tax and how to deal with the various tax forms from two State tax authorities.  The fact that HMRC says that 400,000 expatriate Citizens  ‘claim’ the  personal allowance on UK income reflects this confusion. Such insouciant citizens could well be in for a very great shock.  They are not evil people. They are just average people and not that aware of the financial complications  invented by the civil service.

Some private pensions have to be taxed in the UK.  These will also suffer from a greatly increased tax burden if these tax allowances are removed.  As said above  tax credits will not allay such taxation in the UK.

B Low Incomes  HMRC, I repeat, has not understood the varied lives of those British citizens resident in France who have low incomes emanating from the UK. 

There are those who earn income from the UK and are thereby taxed on that in the UK.  They may offer a service of some kind (e.g consultancy), or mark exam papers or sell goods which they make themselves. They may even ‘commute’ on occasions to perform some function.  There are those people  who ‘work from home’ and that home could easily be in France or elsewhere. They are non-UK-resident but otherwise are no different from a ‘home worker’ in the UK.

There are those who have some form of investments which pay interest in the UK.

A number with low incomes have been informed by HMRC that they are ‘non taxable’ because of their low incomes and need no longer complete a tax return.

Their income is taxable also in France but the French tax system is favourable  and  they lie below the tax thresholds in France also.

It may be difficult for tax officials to understand  but many people are already in a state of confusion where what income should be declared to their national State or their State of Residence.  The Tax departments lay down rules which are difficult for the average person, especially the elderly, to understand and this policy consultation document is compounding this confusion of bureaucracy. Remember further that large numbers of people, especially the elderly,  do not have computers nor access to the internet and have little understanding of how tax laws operate across the State borders in Europe. It would be far wiser for tax departments in collaboration across the EU to simplify the rules rather than complicate them.

Complications  -- The ratio of income  arising in the UK and abroad

A suggestion is made (see section 5.2) that the expatriate tax payer might declare how much income is raised abroad and how much arises within the UK.  The reference to  %  of income received from here and there, UK or elsewhere, and minimal income limits  is frankly onerous.  It is a step into new territory and a step too far.  Consider a retired couple who let out part of their property  for holiday rental in France.  Why should they tell the UK tax authorities what income they receive from that minor income?   This is getting towards an expectation that all British expatriate citizens should disclose their world-wide income to the British tax authority. 

And if the ratio should be £1 either side of the threshold ratio it would mean a cliff   face in the amount of tax demanded.  i.e a difference of  possibly £2,000 or more.

***********************

One can write to HMRC to comment and protest..

 ( before the 9^th October 2014) to

nonresidentspersonalallowanceconsultation@hmtreasury.gsi.gov.uk

A draft letter  along with a repeat of the material here  (EXPANDED) can be read at
www.lefourquet.net/90Cdraft.doc

British Old Age Pensioners and their emigration to August 2012

 To go to the Index and start click here
The Index has a list of other references to postings on OAPS  MIGRATION 

The rise in the number of British Old Age State Pensioners [BOAPs] in Europe beyond the UK continues. Other changes occur world-wide.

It is to be expected that British politicians should be interested in the subject of the emigration of British Pensioners.  There is a large ‘constituency’ of British Citizens abroad, of whose needs and aspirations most MPs and the Government appear to be unaware.

The latest statistics for AUGUST 2012 are published.

to view the statistics follow the link.< here.

[To view the graph and the table below in a larger format click on them - to return press 'esc' on the computer]

Graph for some larger countries in Europe from 1973 is:----

The total global number of  BOAPs is 12,798,530

The total number abroad is                  1,203,690  which is 9.40% of the total

 i.e. nearly 1 in 10 pensioners live outside the UK

The total number who live in Europe [EU+EEA+*see note] beyond the UK is 455,950

which is 3.56% of the total. i.e. over 3 in a 100  live in the EU/EEA beyond the UK. i.e over one third of the pensioners abroad live in the EU/EEA.

* note – including  a few in Croatia, Macedonia and Bosnia which might well join the EU, to which some BOAPs are emigrating.

Changes in Demography.

The percentage of those living abroad (about 9.4% plus) has increased very little in the past two years.  But  there are significant movements in some regions.

In Europe during the year August  to August 2011-2012 the yearly increase has slackened but not stopped, The percentage of BOAPs in the  EU/EEA (in relation to the total global number of BOAPs) is more or less static. But the actual number has increased by 4380!  France has seen the greatest inflow of British Pensioners.

Note:- Switzerland and the Netherlands have the fastest growing % number of  BOAPs.

Australia and Canada and S.Africa

The chart here (n.b. of numbers between  May 2011 and August 2012 – fifteen months)  indicates a shrinkage of  numbers. The drop is particularly higher in Canada.  One might well argue with good reason that the frozen pensions which apply to these countries has some affect.

Jamaica and Pakistan  The BOAPs number has also dropped.  Jamaica does not  have a frozen pension regime.  Possibly the ‘Windrush’ generation, many of whom may have retired ‘back home’ has exhausted itself , and the next generation has not the desire to retire to that island. 

A similar argument might apply to Pakistan, but the troubles in Pakistan might also be a deterrent.

India and New Zealand.

Both of these countries have ‘frozen pensions’ yet their BOAPs number are rising.  Both are countries ‘on the up’, successful.  N.Z. is the most ‘English/British’ of countries beyond Europe.  Both countries have English as a current language.  
[Notes on table :- blue background = EU/EEA  -- *star = pensions NOT frozen.}

Expatriates Frozen.

 Frozen in Canada.   A Story of Our British Country Folk.     How you can help.

Many years ago I stood near the bridge which separates the USA from Canada and I admired the magnificence of the Niagara  Falls.  No doubt today there are British pensioners  living on both sides of that Bridge, but they would be foolish indeed to live in Canada, because their State Retirement pension would be frozen at the level at which they emigrated.  But, perhaps one such elderly couple is there because their daughter had moved there years before. She and her family have a large Canadian house and she feels more able than her brother still living in Woking, England, to care for her parents.
Their son and his family in England, have a small modern house scarcely 18 feet wide on a Wimpey estate and with their own children to care for, there is not the space for his parents.   The parents are concerned for his welfare and the education of  their grandchildren and all the social welfare system of the UK.

So!   What has this story to do with you?  Two elements - firstly  the  situation of  the representation to Parliament of the elderly couple who will have powerful links for the rest of their lives with the social systems of Britain, and secondly the gross unfairness of their frozen pensions just because they need to live in Canada, rather than the USA, or stayed in Britain.

In both matters they are  unfairly treated by the Government of their homeland.  After 15 years they have no representation in England,  although they remain deeply concerned about the welfare of their son and his family, and they remain dependent for their State pensions on Britain, and the husband's police pension and its taxation, for he served in the police force in Guildford.
So in 2011 these grandparents are concerned - you bet! of course they are!
So they add their names to two petitions.  One on their frozen vote and the other on their frozen pension.  If they had the vote they may influence the pension!

http://votes-for-expat-brits.com.
http://epetitions.direct.gov.uk/petitions/16387

They are British Citizens.  In spite of all the knocks which their own British Government direct at them, they remain proud to be British.  They come from families of humble origins*, but with guts and courage have survived the vicissitudes of the past 80 years and their children have tried in spirit to follow in their footsteps. 

*their parents supported Labour!

Australia.   I read of a retired engineer there aged 81, whose Old Age Pension is only £18 a week, because it is frozen.  Those expatriates who live in Australia have signed in their hundreds both of the petitions. This week the number of British Pensioners outside the EU (particularly in Australia) who have signed the petition on the frozen vote exceeds those pensioners in Europe who have signed the same petition. 

So what does all this mean to you?     In the cause of British solidarity, just as the Australians (one hopes that the Canadians will follow suit) have voted to thaw both the frozen vote and the frozen pensions, so all Britons everywhere should support both causes. 
Please sign up on both petitions.   And copy this on to other British pensioners, expatriates and indeed those remaining in our homeland.

Other Information.  You may wish to write to a British MP - You can find a list and thus their email addresses via the following link
http://www.parliament.uk/mps-lords-and-offices/mps/
It is believed that the LibDems are against extending the 15 year vote, but are for unfreezing pensions. They are a major influence in the Coalition Government.
The Conservatives seem to be for unfreezing the vote but possibly against unfreezing the pensions.  There is no indication of Labour leanings, but they can surely be influenced?  Leaders are - LibDems - Nick Clegg;  Labour - Ed Miliband; Conservatives - David Cameron.

Brian Cave - organiser

Weird World of Government Pensions

To go to the Index and start of the blog click here.

DOUBLE TAXATION MYSTERY.

Her Majesty’s Revenue and Customs [HMRC] publish ‘A listof Double Taxation Agreements [DTAs].’

http://www.hmrc.gov.uk/taxtreaties/in-force/

There is also a link to guidance on whether a particular pension is treated as being a ‘Government’ type pension in the HM Revenue & Customs International Manual. This is available at :--

http://www.hmrc.gov.uk/manuals/intmanual/INTM343040.htm

The reading of these documents gives rise to several mysteries.

In relation to the DTA France/UK, we read under the column concerning Government Pensions that ‘full relief’ from taxation is available. This would mean full relief from taxation in France of this revenue for British Citizens resident in France. To this statement is attached a ‘Note’ . This note reads ‘Under new treaty, for income paid on or after 6 April 2010. No relief prior to that date.’

This is a mystery! Pensioners receiving a Government Pension (Teachers, Police, Firemen etc.) have had relief from French taxation for years. However, in a certain sense it has not been ‘full relief’. One has had to declare this revenue on the tax forms. This has affected any tax or relief (fairly or not!) on any other revenue, including the Old Age Pension which is taxable in France, by indicating a threshold of world-wide income. Thus the note seems odd.  Have I missed something?

A new DTA did come into operation this year. I have both the old and the new and cannot see any material difference between them with respect to Government Pensions. I have written to HMRC asking what has materially changed on April 6th 2010. If the declaration of this tax on the French tax forms has changed, then this would bring France into alignment with the situation in Spain and indeed it would be a very important change.

Concerning Government Pensions. Perusal of the second document shows some weird bureaucratic situations. NHS pensions are largely deemed to be ‘non-government’ pensions.

But if an NHS pensioner moved to Germany it becomes a ‘government’ pension.

A policeman's or a fireman’s UK pension in France is a ‘UK government’ pension. In Greece , Israel and quite a few other odd countries it is deemed a ‘non-government pension'!

One also notes that this table of information is a good deal out of date, since it refers to ‘Yugoslavia’! But no doubt it is still ‘legal’!

Double Taxation again -updated 10/03/2011

[To go to beginning of the blog - click here]

UPDATED 12th March 2011   ----- of individuals and companies in Europe.

This includes many British pensioners who have ‘UK Government Pensions’! Teachers, Fire and Police, Military, LGOs and so on in France.

At the end of April 2010 The European Commission launched an online public consultation to ask anyone for information on double taxation problems that they have encountered within the EU. The consultation ran until 30 June 2010.

EU Commissioner for Taxation and Customs Union, Audit and Anti-Fraud, Algirdas Šemeta, said: “Double taxation can deter cross-border activity in the EU and the functioning of the Internal Market. I am determined to tackle this obstacle. This consultation will help us to assess the real scale and financial impact of double taxation for citizens and businesses. I will then work towards finding the most appropriate and effective solutions."

The aim of the public consultation was to identify clearly the nature of the problems that EU taxpayers are facing and the extend to which many individuals and companies are encountering the problem of being taxed on the same income or profits in two or more different Member States.

Mr. Semeta indicated areas of difficulty for all kinds of taxpayers. This Blog has demonstrated clearly that for the British pensioner in France it means that they cannot benefit from tax rebates on tax paid to the UK.   Mr Semeta said ‘it is not clear how well the Double Taxation Conventions work’. This blog knows they do not! Look at Spreadsheet (click) –If your income is middling and you need a home-help it affects you.

The EU consultation concerns all direct taxes – The Commission is also inviting suggestions on how to effectively and rapidly remedy the double taxation identified.

Following the end of the consultation period [JUNE 30th 2010], the Commission published a summary of all contributions received. It analysed the replies in detail and used them in preparing possible initiatives for EU action in the field of direct taxation.

Anyone was invited to reply to the consultation by completing the questionnaire online

http://ec.europa.eu/taxation_customs/common/consultations/tax/index_en.htm

The Blog’s author completed a personal questionnaire . SEE Concern3 (click) on this site. The published report was linked here -
[UPDATE - April 2013 - The report seems to have been taken down. - The following link may give some guidance?]
http://ec.europa.eu/taxation_customs/taxation/personal_tax/double_tax_conventions/index_en.htm


I have to say - It doesn't get one very far! My comments were noted and shared I see by a Belgian.
Further recommendations are promised!

TAXUD-E1-Consultation@ec.europa.eu
Postal address: European Commission
Directorate-General for Taxation and Customs Union
Rue de Spa 3, Office 8/007
B-1049 Brussels
Fax: +32-2-29 56377

Report by a retired Police sergeant on life in France.

To go to start of the Blog click here.

Tax is taxing when you are an ex-pat, (amongst other things).

When you decide to move abroad you hope to leave behind the many irritations of life but of course that is a false hope. As soon as you put down your roots again the bills recommence and you also have to tackle the many things that one has to do to ensure life continues on an even keel. Health, tax, household bills et cetera have to be sorted, compounded in our case by having to sort it all out in a foreign tongue and understanding different regimes.

These irritations are short lived as you settle into the rhythm of living abroad and establish yourself in the new life you have chosen. However, as you continue to live your life you realise that there are irritations that cannot be easily dealt with as an ex-pat. You suddenly become aware that you forego some rights when you move out of the UK if, (as we were), you are honest from the outset, about your intentions. These irritations are a result of UK policy and relate in particular to people such as us on a local authority pension. Whilst this article may not be of much interest to those still in the UK, (but their support would be terrific), I trust it will be of interest to other ex-pats who I hope may rally to the cause. Some of the information may be of use, particularly to anyone in France, but also in many other respects to others in Spain or elsewhere in the EU.

The first irritation is taxation. When you leave UK shores you cannot choose where the tax on your occupational pension is paid. It will be deducted at source in the UK before you receive it. This has implications that are not immediately obvious but I will come to that later.

The second irritation is that you will lose your right to vote in the UK after you have been abroad for fifteen years. Well, that is your problem, you might say. I might agree with you except for the fact we will continue to pay taxation in the UK until the end of our days. Therefore we will eventually have in effect, taxation without representation, ‘comme la Boston Tea Party’.

The third irritation is the nonsense that is loosely called ‘The Freedom of Movement’ within the EU. On the face of it there is a freedom of movement within EU Communities but that freedom does not carry with it all the rights of a UK citizen. You cannot, for instance, port any benefits when you move abroad unless, (in certain circumstances), you are already in receipt of those benefits and even then they may be stopped. One of the benefits that ex-pats may or may not get, (and this may not get much sympathy from some in the UK), is the Winter Fuel Allowance. It should be possible for all retired UK citizens in Europe under EU Regulations to receive all elderly persons' benefits, related to age, available to similar persons in the UK especially the Winter Fuel Payment, pension credits but it is not that simple.

One must be beware of the political overtones of the title ’Winter Fuel Payment’. It was instituted in 1997/8 by Gordon Brown to ‘help out the elderly with their winter fuel costs’. That is to say it is indeed a supplement to the payments to the elderly. Instead of raising the Old Age Pension, which is taxable, this payment, which is non-taxable, is given to ALL elderly persons, whether they are rich or poor, whether they live in the Scilly Isles or the Shetlands.

But also there are many not so well off pensioners living on the Continent who are refused it. They often are living in colder winters than the pensioners in Devon and Cornwall.

The Government declared at the outset that it was only payable to RESIDENTS in the UK. The European Court again decreed that this was illegal. But the Government has refused to grant it to anyone who left the UK before 1998, and of course if one left the UK before the age of 60 but attained the age of access to the OAP whilst resident on the continent, they also will never receive it. Thus someone who leaves the UK aged 59, (as we did), will not receive the WFP, whilst someone who leaves aged 60, will receive it. In fact of the 360,000 old age pensioners in continental Europe, only 43,000 are paid the WFP. ALL would receive it if they lived in the UK. Many are clearly not claiming it, although they are entitled to do so. It is an unfair system to those who have paid and still continue to pay taxation and other contributions to the UK.

There is no representation for ex-pats and not many are interested in this state of affairs, except of course the French when it comes to their own nationals in Britain. An article in The Telegraph on the 17th April 2009 tells us that France mulls over an 'MP for Britain' to represent French ex-pats in the French parliament, it said, ‘France has unveiled radical plans to create an "MP for Britain" who will sit in the French parliament. The new French overseas constituency of the UK would have its own députés to voice the interests of the estimated 400,000 French ex-pats living in Britain. Under the proposals, Britain would become one of 11 new French constituencies located in countries with large French immigrant populations.

Other countries to get their own French representatives to voice their interests in the French parliament would include Germany, Switzerland and the US. The scheme is the brainchild of French interior affairs minister Alain Marlaix, and has the backing of President Nicolas Sarkozy and his centre-right UMP party. More than two million French living overseas can already vote in their national elections, but only for an MP with a seat in France. The new foreign constituencies would give French ex-pats more direct representation at home in France, Mr Marlaix said.

"This is the first time in any country in the world that something like this had been done," he said. "The new overseas MPs will have identical status to any other MP based in France.

"They will be elected in the same way and speak for the French expatriates they represent."

The UK on the other hand has little or no interest in its ex-pats and they in turn have few rights. If we travel to the UK we cannot access the NHS other than for emergency treatment provided we have our E.H.1.C issued in France before we travel. I have a feeling that an immigrant to the UK will have that entitlement the moment he/she arrives and state that they are a resident in the UK.

There are many other issues and some of the above I have taken from a website set up by a retired Head teacher from the UK called Brian Cave. Brian, who is now 77 years of age, has been fighting for better rights for EU ex-pats and has had quite a bit of coverage in the papers here in France as well as on other media such as French radio. You can find out more by clicking on this link http://pensionersdebout.blogspot.com/

Brian has petitioned the European Court of Human Rights and has had his petition acknowledged. There are three stages. The next stage would be information that the petition is an acceptable area for discussion. Then comes an open debate by the EU committee on the issue. Then comes the EU ruling and then the requests to the French and British Governments to correct their operations. It will be interesting to see what decisions are made but credit must go to Brian for his lone fight for his actions have been taken on his own account but if he is successful many could benefit from his hard work. He can be contacted via his website and would welcome any support. He has his UK MP, Mark Harper, on his side but the ridiculous thing is that because Brian has lived in France for eleven years he will lose that link in four years time, (at 81 years of age!). Brian also tells me of another MP, he says, “Roger Gale (MP for Thanet North) who is superb fighter. He has a house in the Dordogne not far from my residence. He has a good grasp of the situation. I always write to these two together out of politeness to Mark Harper my official representative.” He concludes by saying, “NO LABOUR MP shows the slightest inclination to support me. Some are more than downright rude.” Brian’s campaign slogan is, ’IF ONE DOES NOTHING _ NOTHING GETS DONE!’ and that cannot be disputed.

I said earlier that I would mention the implications of having your Local Authority pension taxed in the UK. As described if you are already in receipt of your pension before you move abroad it will be taxed at source and this cannot be changed. It by law, [Double Taxation Treaty], will ALWAYS be taxed at source in the UK at whatever time you receive it. The law is that it is received FOR SERVICE TO THE GOVERNMENT OR LOCAL GOVERNMENT. Note that although it comes via the public purse it is not because of that circumstance. NHS personnel receive their pensions via the public purse but their pensions are exportable for tax! Their service is considered to be to a National Health Trust, (apparently), and NOT to any government, ridiculous. I do not profess to be an expert in this and I would counsel anyone to seek professional advice before committing themselves but in relation to France Brian emailed me the following which is part of an email relating to taxation, and in particular relating to the old age pension, that I would be willing to share with others who are affected..

‘A very major gripe of mine is that because one is taxed in the UK one cannot obtain any tax relief on that tax via the French authorities. Especially home helps and even gardener help. These attract a relief of 50% of the outlay. When times were good I took out a continuing donation to support the education of a small boy in Cambodia (I know his name and receive the class reports and he writes to me). Under French taxation rules I could get 75% tax relief. I get nothing. For this reason my taxation is about 1,000 euros a year more than if I were a French National with exactly the same sources of income. [That statement is exactly true in all respects.]’…..

I contacted Brian, as our position will change next year when I hit 65 and become eligible for the UK Old Age Pension. This has implications that I will not discuss here but if anyone is in a similar position and requires more information I am happy for the Editor of O&B to pass any emails on to me and I will send on anything I know that may assist. There are peculiarities in France in relation to occupational pensions that do not exist in Spain as the Spanish Authorities, (for once), have implemented the correct procedure but France has not done so, (according to UK authorities who may, of course, be passing the buck).

Brian is doing a good job in fighting the corner for ex-pats although there are some areas I cannot see him winning such as stabilising the pound against the Euro, although he seems to make some good points in this regard also.

This is a complex issue but I ask you to take time to have a look at Brian’s website and drop him a line, or even better, drop a line to your MP and others he mentions on his site. If you don’t know who your MP is log on to this website http://www.writetothem.com/ type in your postcode and it will tell you who he or she is.

I will be contacting N.A.RP.O, which is an excellent pressure group for pensioners, but do not seem to have any links to overseas-retired officers. I would like to know why. When I moved abroad I came out of the organisation, as I could not see it being of any assistance to me living abroad. I may have been hasty in that respect as I may be unaware of support in the organisation that may assist retired officers overseas in such areas as incorrectly implemented government policy.

One final point, if you think that it will all go away and you need not concern yourself about these things as an ex-pat, can I draw your attention to an article I saw in The Independent of the 20th September 2008.

http://www.independent.co.uk/news/uk/politics/britain-stalls-on-new-deal-to-rescue-africa-1790439.htm

This proposes a tax on all currency transfers, which will be yet another tax on hard pressed ex-pats. Let's hope for a cut off for any proposed tax so that any money transferred for living expenses would be exempt. However, anyone transferring a large amount for a house purchase for instance, would have little hope of any exemption if this were brought in. Not holding my breath though .... : - (

I started off by saying that life’s irritations follow you about and of course that is true wherever you live. I have to say though that those irritations are more manageable here in France than they were in the UK in spite of the language difficulties. The British character possesses a strong sense of fair play and injustice is not something easily tolerated. UK ex-pats should not be abandoned and it is a disgrace that the UK do not treat its nationals correctly. It is not a French problem it is a UK one and it should be addressed forthwith.

End.