Uk Tax Free Lump Sum - 'Up In Smoke'?

[factseeker]

Hi,

Been reading up ref Thai taxation on my UK based Pension.

Answers seem to range from no problem will not be taxed in Thailand to the complete reverse.

I just said a 'go' today to my Pension company to transfer my initial UK Tax Free Lump Sum over to a Thai Bank Account I have formed.

Purpose of using it as my 800,000 deposit for O Visa - Retirement - there will be considerably more than that involved.

Have also organised for my annuity payments direct to same Bank - monthly or quarterly.

Had understood that UK taxation would apply as source is UK Pension Company - they will definitely be taking tax at source.

No problem with that at 20% for over my £10k allowance - not too bad.

Plus initial Lump Sum is 'Tax Free' in UK.

But there seems all manner of stuff ref if earn't in same year etc etc.then tax applies.

I am not about to see some 30% of my so called 'tax free' Lump Sum go up in smoke.

So now very concerned that all my calculations astray if I am going to be hit with Thai taxes.

This is all from the one Private Pension set up originally in circa 1983 - last paid into end of 1980's.

Any help out there - as I am considering putting a block on situation until I get something definitive.

Just goes around and around in circles more or less 50% say OK - 50% say I get hit if in Thailand for over 180+ days.

Rgds.

FS.

[JohnC]

There is no Thai tax liability for your UK pension, however, depending on your personal circumstances lump sum payment from a UK pension fund is usually paid 25% tax free with the balance taxed at your normal tax band unless of course you're under your annual tax allowance. You also mention your £10k allowance which indicates you are over 65 , if you are also drawing a UK state pension be aware that your annual tax allowance is set against this with any balance offset against any other income.

[SimonD]

There is a pinned UK Pensions thread at the top of this forum. Lots of 'been there, done that' advice available.

[factseeker]

There is a pinned UK Pensions thread at the top of this forum. Lots of 'been there, done that' advice available.

Thnxs chaps,

Ref thread you suggest - seems to be more of a brawl ref 'Frozen' Pensions.

A Norwegian chap has apparently just got 'hit' for tax on his pension.

Plus some say after 180 days tay all gets taxed.

FS.

[JohnC]

Been here six years and never been questioned on tax on pensions.

[meatboy]

no tax on pensions in los,if you leave your retirement amount in a thai bank 800000bht fixed rate you will be taxed at 15% on the interest,at the end of their tax year dec.you can claim it back.

[GuestHouse]

The UK GOV website is the gospel on this, http://www.direct.gov.uk/en/Pensionsandretirementplanning/Companyandpersonalpensions/PersonalPensions/DG_10027141

We'll done for making it the the start line - enjoy your retirement.

[Darrel]

" ....... I just said a 'go' today to my Pension company to transfer my initial UK Tax Free Lump Sum over to a Thai Bank Account I have formed.

...... Have also organised for my annuity payments direct to same Bank - monthly or quarterly......."

I would not send money here during the year in which I receive it. I would always keep the money somewhere else until at least the next year before sending it here, at which point it is capital rather than income.

Under current rules this should minimise any tax liability here. Rules can change, of course, and I suspect that one day they probably will.

[meatboy]

no free bus pass and no heating allowance,you have to stand up on a bht bus and give your seat to a younger person,but you will be a hansum man.welcome to los.

[Semper]

no tax on pensions in los,if you leave your retirement amount in a thai bank 800000bht fixed rate you will be taxed at 15% on the interest,at the end of their tax year dec.you can claim it back.

How/where do you do that?

[topt]

no tax on pensions in los,if you leave your retirement amount in a thai bank 800000bht fixed rate you will be taxed at 15% on the interest,at the end of their tax year dec.you can claim it back.

How/where do you do that?

chiang mai posted this link in the discussion about Bank Savings rates over in Jobs,Economy,...etc

[meatboy]

no tax on pensions in los,if you leave your retirement amount in a thai bank 800000bht fixed rate you will be taxed at 15% on the interest,at the end of their tax year dec.you can claim it back.

How/where do you do that?

i done it last year,got enough back to buy 3 cases of cider.

[factseeker]

no tax on pensions in los,if you leave your retirement amount in a thai bank 800000bht fixed rate you will be taxed at 15% on the interest,at the end of their tax year dec.you can claim it back.

How/where do you do that?

i done it last year,got enough back to buy 3 cases of cider.

Hi MeatBoy,

The dividing line seems to be suggested as those that stay for over 180 days or so.

Where you about for that long and still did not get 'hit' for tax??

Best Rgds.

FS

[factseeker]

The UK GOV website is the gospel on this, http://www.direct.go...ons/DG_10027141

We'll done for making it the the start line - enjoy your retirement.

Thnxs for the congrats - feeling very relaxed about decisions - just did not want to start off with a great big bill.

Great Forum this one.

Thnxs.

FS