Do British ex-Pats pay income tax on their UK Pension.

[Graham376]

Tax residence is, theoretically, not optional. It is where you are ordinarily resident more than 183 days.

In theory yes but in practice only if you tell them As Nortada has said, Portugal don't bother chasing people and in common with other Schengen countries haven't a clue when people come and go. UK tax man isn't going to bother either as long as they're collecting their fair share.

 

[BurnitBlue]

Nortada is correct I personally have learnt a lot from the polite and knowledgeable replies. in particular The revelation that my pension is not derived from taxed income while I was in employment. With those last few posts the light dawned and I can relax that Sweden is not stealing my hard-earned pension. The pension contributions even when taken from gross earnings was tax free to start with, so I can stop feeling like a victim.

Thanks to all.

 

[Angele]

Tax residence is, theoretically, not optional. It is where you are ordinarily resident more than 183 days. The U.K. used to have a 90 day rule (at the time of my studies) i.e. An average of 90 days assessed over a number of years.

As Steveej explained in #30 above, the rules determining residence and ordinary residence in the UK have changed. Gone is any rigid 183-day rule and it has been replaced by a (fairly complex, but flow chart in nature) Statutory Residence Test system that has a number of tests that mean you are definitely UK resident or definitely not resident for tax purposes. If you are neither clearly one nor the other then you have to follow the flow chart to its conclusion.

This has all come in (I think) since you moved to your present country of residence.

 

[DownWest]

In theory yes but in practice only if you tell them As Nortada has said, Portugal don't bother chasing people and in common with other Schengen countries haven't a clue when people come and go. UK tax man isn't going to bother either as long as they're collecting their fair share.

I would be a bit careful with 'they don't have a clue' Several cases where they kept track of people with UK reg cars to insure they kept to the rules.
One guy who worked there for several years and kept his accts carefully. Looked after his workers and complied with the tax lot.
Made a silly minor mistake. He used to buy old wrecks of houses and do them up, sell on and buy another. Only, he managed to overlap by a few days, selling to a relative, a sale and purchase. Each house was his principal residence, so no CGT. He left the country and bought a wreck in France. The overlap surfaced and they demanded CGT on the sale. He explained it and thought that was OK. Not so, they went heavy and fined him, now rapidly escalated to sums he doesn't have and they are after his house in France. They are short of money and not interested in how they get it.
As said, mostly not interested in retirees, as they spend their money in the country. But they could get interested if it was worth it.

 

[GHA]

Tax residence is, theoretically, not optional.

It is optional for UK domaciled IME. Keep well within the non res criteria from the HMRC and don't take the P, they don't care. Last time I was non res for tax anywhere for 5 years. Spoke to them beforehand, they were helpful and basically said earn it abroad we don't care, as long as you're not pulling a fast one by having a bit of a long holiday.
Same again now though stuck in one country for longer than was expected, luckily they don't care .

 

[Graham376]

As said, mostly not interested in retirees, as they spend their money in the country. But they could get interested if it was worth it.

As in most countries, there's a big difference between living on a boat moving around and living ashore property dodging or any other kind of business and running around in UK reg car.

Even to own a Portuguese car here needs a fiscal (tax) number and that number is also requested when making large value purchases. Unlike the UK, houses/apartments are a taxable asset, tax due on sale but there's a (IIRC 2 year) rollover period if purchasing another.

Although the rules say we should submit tax returns, we have never done so and, although we're in the system with property and a car, have never been asked to. All may change in a year or two though.