How does the UK personal allowance effect the tax payable in Thailand? I'm wondering if it's ignored when calculating the Thai tax payable.

 

So in UK that part of the income isn't taxed but would it be taxed in Thailand? ignoring DTR for now

This is what many expect, unless some sort of new announcement is forthcoming which exempts all pensions.

It hasn't come yet and I don't expect it ever will - so the devil may well be in the detail here.

 

The RD could make things a lot easier for many people or hammer them hard and do a huge amount of work to collect relatively little.

How they will proceed is anyones guess right now and nobody knows for sure

Yes this will be an issue for those with income levels under the UK personal threshold, they may pay no tax in the UK, but will end up with a tax liability in Thailand due to lower allowances, and with no tax paid in the UK theres nothing to credit against Thailand tax

 

It may be an issue with capital gains from a property sale also, IF taxed on bringing into Thailand.

In the UK there is (a now smaller than before) annual exempt amount 3000GBP, but more importantly if you have rented out your UK home to move to Thailand the UK gives PRR relief for the time you lived in the property +9 months, and if you owned the property for a long time and you are UK Non Resident > 5 years you can rebase the purchase price to April 2015, so gains are only calculated from April 2015 to sold date in the UK. 

Edited November 27, 20241 yr by digital

The Thai allowances are similar to the UK, 60,000 personal allowance, + 190,000 if over 65,+100,000 if money is pension, + first 150,000 is free of tax = 500,000 =£ 11,627. additional 60,000 if making a joint claim with the wife

9 minutes ago, steve187 said:

The Thai allowances are similar to the UK, 60,000 personal allowance, + 190,000 if over 65,+100,000 if money is pension, + first 150,000 is free of tax = 500,000 =£ 11,627. additional 60,000 if making a joint claim with the wife

+150k if pension money

+?? if child in education (allegedly)

Edited November 27, 20241 yr by BritManToo

1 hour ago, steve187 said:

The Thai allowances are similar to the UK, 60,000 personal allowance, + 190,000 if over 65,+100,000 if money is pension, + first 150,000 is free of tax = 500,000 =£ 11,627. additional 60,000 if making a joint claim with the wife

So not similar then, UK under 65 £12,570

On 11/27/2024 at 5:17 AM, scubascuba3 said:

How does the UK personal allowance effect the tax payable in Thailand? I'm wondering if it's ignored when calculating the Thai tax payable.

 

So in UK that part of the income isn't taxed but would it be taxed in Thailand? ignoring DTR for now

The U.K. tax allowance has no effect on Thai tax.

Tax paid in the U.K. on money subsequently remitted can be offset against your Thai tax liability 

 

U.K. tax liability and Thai tax liability are calculated totally independently, though the amounts of tax required to be paid are linked.

Depending on the allowances you can claim in Thailand and the amount you remit from the U.K. there is an amount of Thai tax liability that cannot be reduced as the U.K. tax free allowance is much higher than the similar Thai allowance.

 

However once you start paying U.K. tax the amount of Thai tax liabilities rapidly decreases due to the higher U.K. tax rate.

 

TLDR each individual needs to calculate their personal Thai and U.K. liabilities and payments required.. It can be

1) no U.K. tax, no Thai tax

2) no U.K. tax,  Thai tax

3) U.K. tax, Thai tax

4) U.K. tax, no Thai tax

 

Edited November 28, 20241 yr by sometimewoodworker