Uk Tax On Pension & Living Here

[rocky123]

Hi I have a UK fire service pension and have lived here for 2 years +, I still own a house in uk but only visit 2 weeks a year. Should I be paying tax on my pension ? Many thanks for your time.

[Morden]

Rocky,

Did you tell the inland Revenue that you would be living abroad? Their advice is free and accurate.

Do you earn rent on your house in the UK? If so, there's a downloadable IR form that you must complete and your letting agent will be obliged by law to deduct tax at source. Also, if you have any UK income in addition to your pension, you might benefit from asking an accountant in the UK to handle your tax affairs and, perhaps, save you some money.

In brief, like death, tax on income is one of the few things in life that are inevitable, at least without breaking some law or other somewhere.

[Oswulf]

Your UK pension is almost certainly paid after tax is deducted. (The tax is unavoidable.) Technically, you should also pay Thai tax on your pension, though this isn't enforced. To be careful, you should save up your pension in a UK or offshore bank account, then take the money more than a year after it's received.

[Patriciachas]

Hi I have a UK fire service pension and have lived here for 2 years +, I still own a house in uk but only visit 2 weeks a year. Should I be paying tax on my pension ? Many thanks for your time.

Once you exceed your tax allowance for the year tax is due on all other income personal allowance for 2006-07 is £5,035 for under 65s.

then tax bands are 0-£2,150 10% £2,151-£33,300 22%

[Tyke]

Hi I have a UK fire service pension and have lived here for 2 years +, I still own a house in uk but only visit 2 weeks a year. Should I be paying tax on my pension ? Many thanks for your time.

All income generated in the UK is taxable in the UK whether it is bank interest, pension, rental income etc. (although costs of renting can be offset against income). The UK has a double taxation agreement with Thailand which means you can elect to be taxed in the UK or in Thailand - I would choose the former. Even cash brought into Thailand from the UK is technically taxable if income on that basis so if u elect to be taxed in Thailand then make sure you have 2 accounts in the UK or offshore that separates capital from interest (which is the income part) and then draw cash from the capital account - that way you are not bringing income into Thailand, only capital which is not taxable.

[rocky123]

Thanks guy. Wow thats scary stuf, I thought I was hard done by.

[briley]

Patriciachas

10% band goes in April 2008 except for interest on savings.

[Patriciachas]

Patriciachas

10% band goes in April 2008 except for interest on savings.

Briley,Thanks for that overlooked it

[pkrv]

just one other thing to consider - The UK state pension does not rise when you are outside of the EU - The British goverment were embarrased quite some time ago when Ex-Pats were found living in caves in Cyprus. Expect income from UK state pension benefits to be erroded over your life time (or in my opinion defaulted on) there have been major battles in the E.U. Court of Human Rights on this issue.

[pontious]

Even though the UK does have double taxation with Thailand, personal pensions are not included.

( even though the Hull consulate website implies you can choose!)

Edited November 1, 2007 by pontious