When I die my Thai wife will be paid a pension from offshore.The pension is denominated in £ and will be remitted monthly to her bank account in Thailand where it will of course be converted into Thai Baht.She does not currently submit a Thai tax return because she has insufficient personal income to make it necessary.

 

I am assuming however that she will be required to pay income tax on the pension. We have no problem with this but am uncertain about practicalities.Does she for instance need to take the initiative in approaching the Tax Office? Will the Bank ask whether tax is being paid or just pay the amount gross into her account? I estimate the gross before tax amount will be around Baht 200,000.

 

I will be taking specialist advice about this in due course but wondered whether anybody had any insights.

if its a Uk generated pension will HMRC not teat it as taxable

1 hour ago, steve187 said:

if its a Uk generated pension will HMRC not teat it as taxable

Not if the beneficiary is not resident in the UK for tax purposes.

19 hours ago, jayboy said:

Not if the beneficiary is not resident in the UK for tax purposes.

I don’t think that’s correct, my understanding is that pensions from the UK are taxed at source, that’s certainly what my pension provider advised what would happen when my wife was eligible for her widows pension.

 

The figure of 200,000 Baht you mentioned equates to less than the Personal Allowance, l don’t think non UK residents who are not British Nationals who are recipients of a pension automatically get the PA, but they may be able to claim the tax back at the end of the tax year.

 

I note that the pension is paid from offshore, does that mean it doesn’t originate from the UK?

 

18 hours ago, jayboy said:

Not if the beneficiary is not resident in the UK for tax purposes.

I am in this situation, as my pension income is generated in the UK i pay tax, resident or not. i have talked to my financial advisor and a tax specialist who confirm this, the only way would be to move my pension off shore, with all the costs that involves

200K/month or 200k/year? 

I only ask because thresholds may have an impact upon the answer.