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- 1. Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a local authority thereof, or by a statutory body of either, to an individual in respect of services rendered to that State, authority or statutory body shall be taxable only in that State. However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident and a national of that State without being also a national of the first-mentioned State.
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- 2. Pensions and other similar remuneration paid by, or out of funds created by, a Contracting State or a local authority thereof, or, in the case of France, a statutory body, to an individual in respect of services rendered to that State, authority or statutory body shall be taxable only in that State. However, such pension shall be taxable only in the other Contracting State if the individual is a resident and a national of that State without being also a national of the first-mentioned State.
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- 3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration and to pensions in respect of services rendered in connection with a business carried on by a Contracting State or a local authority thereof or by a statutory body of either.
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- 4. Notwithstanding any other provision of this Convention:
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- (a) the pensions referred to in paragraph (4) of Article 81 of the French tax code (code général des impôts) shall be exempt from United Kingdom tax, regardless of the nationality of the pensioner, so long as they are exempt from French tax;
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- (b) 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.