full time cruisers and UK tax

[wonkywinch]

In as much, I believe, that the state pension tax is deducted at source if you live in UK, but not taxable if you don't, it is then your responsibility to advise the relevant tax authority.

See my post #17 in this thread. State pension is not taxed at source. I receive three pensions, SP, a DB scheme and from my own SIPP and pay higher rate tax (inc loss of personal allowance). The SP is still paid to me gross so I need to account for it in my tax return. I live in the UK.

Tax when you get a pension

 

[billskip]

See my post #17 in this thread. State pension is not taxed at source. I receive three pensions, SP, a DB scheme and from my own SIPP and pay higher rate tax (inc loss of personal allowance). The SP is still paid to me gross so I need to account for it in my tax return. I live in the UK.

Tax when you get a pension

I can only go on what I have been advised by a tax ossifer.....it seems to indicate that if the SP was below threshold it hat to be declared if additional income. ...if it was the only source of income and was above threshold it was deducted at source.....but....as said I can only go by what I was told.

 

[Neeves]

Only if you move to a country without a reciprocal agreement.

Getting your UK State Pension if you live outside the UK
Usually you can get your State Pension paid anywhere you live. However, if you live outside the UK and get a UK State Pension, it will only be increased yearly if you live in:

> a country that belongs to the European Economic Area,
> Switzerland or,
> a country that has an agreement with the UK that allows for annual increases.

https://assets.publishing.service.g...le/584031/Going_to_Live_Abroad_web_130117.pdf

The taxation or not of the state pension are not really related. There is a personal tax allowance of £12,570. The state pension generally used to be lower than that so no tax was due but there is no relationship between the SP and tax rules, just so happens the SP is now nudging over the allowance due to triple lock increasing it and the fiscal drag of the personal allowance not being increased for more than 4 years.

In as much, I believe, that the state pension tax is deducted at source if you live in UK, but not taxable if you don't, it is then your responsibility to advise the relevant tax authority.

I am a citizen and resident in Australia. I hold dual nationality, UK/Oz. My UK state pension is taxed at source, in the UK. My understanding is that my pension could be taxed in the UK or Oz, my choice - but I would need to prove the income was taxed..... somewhere. When I reached the age at which I would receive the UK state pension I also received a Tax Coding advice from the UK, it came 'automatically'.

In view of the point - one's, UK, pension must be taxed somewhere and you need to prove same then you cannot escape being taxed. Though if the personal allowance was overly generous you might fall below the tax threshold. If you were swanning round the world and of no fixed abode (or somewhere with no tax) - then, I believe, you would be taxed by HMG as if living in the UK.

Frankly in terms of the UK State pension I would not plan on the basis of trying to escape UK tax on the pension - its nominal - there are much more important issues.

The OP needs professional tax advice. The OP might also need advice on the implications of living 'overseas' if he becomes incapacitated, needs major dental work, needs a new hip, there is another health epidemic, the country in which he resides devalues its currency, might he become liable for military service.... etc, etc. Some information or advice he might obtain here.

It his important to accept, when emigrating, that you will, inevitably, become old and add seniority to your equation.

Jonathan

The link wonky winch provides, see post 41, of the tax regime in the UK seems to summarise in simple English the tax implications on Pensions and, some, other sources of income (other pensions etc).

 

[billskip]

State pension is not taxed at source.

My UK state pension is taxed at source,

And then wonkywinch likes and agrees your post???....the advice to get clarification from the tax office is the best...as I did.

 

[wonkywinch]

And then wonkywinch likes and agrees your post???....the advice to get clarification from the tax office is the best...as I did.

I liked the post simply because it confirms Neeve's domicile in Oz. His dual nationality doesn't come into it, but he's confirmed he agreed with HMRC to be taxed on his SP but this is not the default position re SP.

 

[Zing]

I liked the post simply because it confirms Neeve's domicile in Oz. His dual nationality doesn't come into it, but he's confirmed he agreed with HMRC to be taxed on his SP but this is not the default position re SP.

HMRC don’t give high quality advice. They also advise to err, if in doubt in their favour. They also often are clueless. Tax law is hideously complicated and a young HMRC call centre operative will not have the skills required.

Get independent advice. It will be expensive, but cheap in the end.