chrisdom Posted June 21, 2014 Share Posted June 21, 2014 This needs to be spread far and wide (could affect all ex-pats anywhere in the world not just Thailand). In summary HMRC (the tax collectors) very quietly announced in March that they would "consult" on how to remove personal tax allowances for ex-pats thus costing every ex-pat who receives money from the UK £2,000 every year. Pensioners who receive £10,000 per annum or less will suddenly find the are taxed on every penny whereas now they pay nothing as their personal allowance allows them earnings up to £10,000 tax free. Hidden away in the HMRC document is paragraph 2.67 which states: "The UK personal allowance and people who are not resident in the UK - The UK now has one of the most generous personal allowances in the world. To ensure this remains well targeted, the government intends to consult on whether and how the allowance could be restricted to UK residents and those living overseas who have strong economic connections in the UK, as is the case in many other countries, including most of the EU." My comment: At the moment, all UK residents and UK and other EU nationals living outside the UK can offset the personal allowance against UK sourced income. The way the above paragraph reads, this might remove the allowance from anyone in receipt of personal or company pensions, the state pension or rental income, for example. This is an issue which has slipped under the radar and needs to be brought to the attention of UK expats. If you have been out of the UK for less than 15 years you can still lobby your MP at your last address in the UK. If you feel inclined, check on how to register your views, write to the Prime Minister etc. If, like me, you paid (and still pay) Income tax and paid all required National Insurance you will feel the great sense of injustice that lies beneath this. Everyone is at risk if they receive taxable income from the UK. 2 Link to comment Share on other sites More sharing options...
Puccini Posted June 21, 2014 Share Posted June 21, 2014 Does this removal of personal tax allowance also include the government subsidy for heating? Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app Link to comment Share on other sites More sharing options...
snottgoblin Posted June 21, 2014 Share Posted June 21, 2014 I smell an IFA Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app Link to comment Share on other sites More sharing options...
chrisdom Posted June 21, 2014 Author Share Posted June 21, 2014 WRt at the Heating allowance I don't know but you only get that I think if you have a UK residence anyway. WRT Mr Snottgoblin you are totally and absolutely wrong!! Not connected in any way with IFAs or any other form of "financial advice". Your sense of smell is failing you! Link to comment Share on other sites More sharing options...
snottgoblin Posted June 21, 2014 Share Posted June 21, 2014 Glad to hear that Chris. They have a history Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app Link to comment Share on other sites More sharing options...
chrisdom Posted June 21, 2014 Author Share Posted June 21, 2014 They sure do. But I am sure they will find a way to spin this to their advantage. The most vulnerable are Thai based UK state pensioners and there are many who rely on their meagre pension to live here. They are already hit by the refusal to up-rate their pensions and now they want them taxed from the first £. Someone on £10,000 a year pension is going to be hit hard. Link to comment Share on other sites More sharing options...
Popular Post mrtoad Posted June 21, 2014 Popular Post Share Posted June 21, 2014 They sure do. But I am sure they will find a way to spin this to their advantage. The most vulnerable are Thai based UK state pensioners and there are many who rely on their meagre pension to live here. They are already hit by the refusal to up-rate their pensions and now they want them taxed from the first £. Someone on £10,000 a year pension is going to be hit hard. There will be a few in big problems then. If they have paid in for their working life they should get back irregardless of where they live, IMO. 5 Link to comment Share on other sites More sharing options...
chrisdom Posted June 21, 2014 Author Share Posted June 21, 2014 Correct - totally immoral.. They have been hit once and now face another hit. This will ruin some of the old guys (ex-service men) who choose to live here at the butt end of their lives and can just about manage on their pensions at the moment. UK government choose another soft target but ignore the many sponges on the system. 2 Link to comment Share on other sites More sharing options...
topt Posted June 21, 2014 Share Posted June 21, 2014 OP needs to read more - already a topic on this here - http://www.thaivisa.com/forum/topic/732736-uk-abolition-of-tax-personal-allowance/?hl=+personal +allowance - started 2 weeks ago and I think it was also mentioned in the Pensions thread................ Link to comment Share on other sites More sharing options...
chrisdom Posted June 21, 2014 Author Share Posted June 21, 2014 Thanks for the info. Before posting I contacted TV and was told to post. I am not concerned about there being 2 posts as the more people who know about this, the better. Happy if you disagree but I don't feel any need to justify myself. The issue is far more important than petty points! 1 Link to comment Share on other sites More sharing options...
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