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Discussion Starter · #1 ·
If you get a state pension from the UK, do they send you a P60? I've had one for my occupational pension but not for my state pension (which I only started getting last September).
 

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If you get a state pension from the UK, do they send you a P60? I've had one for my occupational pension but not for my state pension (which I only started getting last September).

The UK do not stop tax on the OAP, so P60 is not applicable.

If you have an income in excess of the tax free allowance (£10,000 ?? ) then you get taxed on the other income, although of course the OAP is counted in the total. Thus the occupational pension gets taxed (more) as the OAP is added to it.

If one is resident in Spain then the OAP must be declared in the income tax return in Spain
 

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Discussion Starter · #5 ·
The UK do not stop tax on the OAP, so P60 is not applicable.

If you have an income in excess of the tax free allowance (£10,000 ?? ) then you get taxed on the other income, although of course the OAP is counted in the total. Thus the occupational pension gets taxed (more) as the OAP is added to it.

If one is resident in Spain then the OAP must be declared in the income tax return in Spain
Thanks - I assumed they wouldn't deduct anything but just wanted to make sure before I go to the gestor to do my IRPF. When the two are added together I'll be below the UK threshold but over the Spanish one. It's quite a luxury after seven years of penury to have enough coming in that I have to pay tax on it.:D
 

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Discussion Starter · #6 ·
We Are thinking on long term leasing for about 5years in Spain. Do we need to pay any sort of taxes?
Yes, basically if you live in Spain for more than 6 months of any calendar year, you become tax-resident here, you have to declare all your income from whatever source, and pay income tax etc to the Spanish government.
 

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The DWP send you a yearly letter which shows the increase.
Use that when submitting your tax return or just total the amount paid into your bank, and give the accountant the figure.
 

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The DWP send you a yearly letter which shows the increase.
Use that when submitting your tax return or just total the amount paid into your bank, and give the accountant the figure.
Using the info in the letter does not really do the job as it is the UK tax year, One needs to add uo the payments actually made, between 1st Jan and 31st Dec.

In my case it is 13 x the 4 weekly payments. Plus the £10 Christmas bonus, and of course any premium bond winnings.
 

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The UK do not stop tax on the OAP, so P60 is not applicable.

If you have an income in excess of the tax free allowance (£10,000 ?? ) then you get taxed on the other income, although of course the OAP is counted in the total. Thus the occupational pension gets taxed (more) as the OAP is added to it.

If one is resident in Spain then the OAP must be declared in the income tax return in Spain
Is it not possible to have the OAP classified as NT by HMRC? I recognise that it must be declared in Spain.
 

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Using the info in the letter does not really do the job as it is the UK tax year, One needs to add uo the payments actually made, between 1st Jan and 31st Dec.

In my case it is 13 x the 4 weekly payments. Plus the £10 Christmas bonus, and of course any premium bond winnings.
You only have to add jan to april, then it's the new rate from then onwards
 

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As I said it is tax free. But of course it is added to any other income, so tax may be payable on that other income at a higher level as a result of the 'tax free' OAP.
Sorry - I think I may be being pedantic (again!). Is not the OAP taxable income (not tax free) but for if ones total UK income is below the UK tax free allowances you will not pay tax on it? I have rental income from the UK which must be declared in the UK and Spain. I pay no UK tax on this currently as it is below the UK tax free allowance. Next year I will get my OAP and if it is added to my UK rental income I will end up paying UK tax on some of my total income declared in the UK. I was anticipating being able to arrange for the OAP to be paid NT in Spain where I am tax resident and only pay tax on it in Spain.
 

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If you are tax resident in Spain then your UK state pension,old age pension, is paid without tax being deducted. It does not form part of your UK income for UK tax purposes as it is taxable only in Spain.
UK rental Income, UK bank interest and dividends are taxable in UK and Spain with the tax paid in UK offset against any tax due in Spain.
UK Government pensions are taxable only in UK and are not declared on your Spanish tax return at the moment. However they must be included in your Spanish tax return next year as other exempt income. Any tax paid in UK on these pensions will be offset against any Spanish tax liability arising.
 

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If you are tax resident in Spain then your UK state pension,old age pension, is paid without tax being deducted. It does not form part of your UK income for UK tax purposes as it is taxable only in Spain.
UK rental Income, UK bank interest and dividends are taxable in UK and Spain with the tax paid in UK offset against any tax due in Spain.
UK Government pensions are taxable only in UK and are not declared on your Spanish tax return at the moment. However they must be included in your Spanish tax return next year as other exempt income. Any tax paid in UK on these pensions will be offset against any Spanish tax liability arising.
Agreed. I think therefore that the point I need clarification on is whether the UK OAP will be paid without tax being deducted automatically. I have an occupational pension from the UK for which I had to complete an FD 9 otherwise it would have been taxed in the UK. Each year I complete a UK tax return but only include the rental income as the occupational pension is NT.
 

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Discussion Starter · #16 ·

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If you are tax resident in Spain then your UK state pension,old age pension, is paid without tax being deducted. It does not form part of your UK income for UK tax purposes as it is taxable only in Spain.
UK rental Income, UK bank interest and dividends are taxable in UK and Spain with the tax paid in UK offset against any tax due in Spain.
UK Government pensions are taxable only in UK and are not declared on your Spanish tax return at the moment. However they must be included in your Spanish tax return next year as other exempt income. Any tax paid in UK on these pensions will be offset against any Spanish tax liability arising.
I seem to recall that one has to pay tax on UK Bank Interest in Spain and then claim back any tax already paid in UK. That is, one should not offset it any more.

Is this correct - does anyone know for sure?
 

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I seem to recall that IF one has to pay tax on UK Bank Interest in Spain and then claim back any tax already paid in UK. That is, one should not offset it any more.

Is this correct - does anyone know for sure?
Yes absolutely.

If the tax is stopped automatically, as with NS & I Bonds, one now claims back the whole amount from HMRC (I believe it is a form 40). Until last year one could only claim back 8% of the 20% stopped and then, not now, one could off-set the 12% against any tax liability in Spain.

There is no option where to pay, the rules in the Double Taxation Agreements are clear.

Only Crown Pensions (police, military, civil service etc) are taxable only in UK. Rental income is taxable in both countries, although the amount paid in one can be off-set in the other.
 

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Discussion Starter · #19 ·

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I think you both MAY have missed my point.

It used to be the case that one could EITHER offset tax paid on savings interest in UK against tax in Spain OR claim it all back from HMRC and pay tax on it here.

My question was/is, can one still offset tax paid in UK on savings interest or not?
 
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