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As per the title, has anybody from the UK got experience of getting their pension tax free?

Can you provide a step-by-step guide of what you had to do and if there were any obstacles that had to overcome?

Thanks in advance.
 

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I have overtyped my answers below.

I hope this helps.

As per the title, has anybody from the UK got experience of getting their pension tax free?Yes. We arranged our pensions in 2009/10 at the outset of the HNR process under Decree Law No 259 dated September 2009

Can you provide a step-by-step guide of what you had to do

No Because this would be dangerous as it would suggest that if you follow these steps then x and y will happen which may not be the case and if there were any obstacles that had to overcome?Not that many, we engaged one of the "Big 4" accountancy firms in Lisbon and they were and still are excellent.

This really is a matter of quite complex tax planning both here and also in the home country, it can and is done but needs to be approached diligently.

Thanks in advance.
I hope that helps, I would suggest all potential "NHR benefitters"to seek professional advice as you only get one chance at it.

Rob
 

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As per the title, has anybody from the UK got experience of getting their pension tax free?

Can you provide a step-by-step guide of what you had to do and if there were any obstacles that had to overcome?

Thanks in advance.
if you mean the state pension,then its paid tax free because you have a £10,600 tax allowance before you pay any tax.if you mean a private pension you will pay tax on it over £10,600 per year.i have a large private pension and have just taken some advice from both the uk tax office and a very clued up md from a large pension firm.it does not matter one jot that i am a resident of portugal or not,i have the 10 year tax holiday from portugal but if you go over the £10,600 tax limit in the uk you will pay uk tax and will not be able to reclaim it.i have read a lot of untrue crap on ex pat web sites about being able to take all of your pension tax free from the uk,its just not true and anyone who does will find it an expensive lesson.you can like me take 25% free of tax but thats it.
 

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i have read a lot of untrue crap on ex pat web sites about being able to take all of your pension tax free from the uk,its just not true and anyone who does will find it an expensive lesson.you can like me take 25% free of tax but thats it.
Hmmmmm

OK so without getting into a slanging match may I suggest reading the following.

https://www.blevinsfranks.com/News/...aven-for-you?gclid=CKaj25Od78UCFdPKtAod31oAgw Section Pension Income.

or

http://www.pwc.pt/pt/fiscalidade/imagens/pwc_europe_best_kept_secret.pdf

Page 5 and 6

OR straight from the horses mouth so to speak

http://info.portaldasfinancas.gov.p...-10BD-4C08-BE44-26CAB723884A/0/IRS_RNH_EN.pdf
A good read especially Section 3 page 8.
The key is not if the monies are taxed or not in the host country it is based around the taxation treatment of the contributions that have made up the pension........etc.

As always this a is a complex area of tax planning, anyone thinking of applying should seek professional advice and not just ask the UK tax office or a businessman.

Finally, and again I really do not want to get in to an argument, your statement of taking 25% tax free is just plain wrong, you take no account of such factors as
1. Is the pension a s226 where a maximum of 33% can be taken
2. You make no mention of specific employment types which are afforded different rules (example Professional Footballers)
3. Is the pension a defined contribution employers scheme predating the ICTA of 1988

and so on......................

HTH

Rob
 

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if you mean the state pension,then its paid tax free because you have a £10,600 tax allowance before you pay any tax.if you mean a private pension you will pay tax on it over £10,600 per year.i have a large private pension and have just taken some advice from both the uk tax office and a very clued up md from a large pension firm.it does not matter one jot that i am a resident of portugal or not,i have the 10 year tax holiday from portugal but if you go over the £10,600 tax limit in the uk you will pay uk tax and will not be able to reclaim it.i have read a lot of untrue crap on ex pat web sites about being able to take all of your pension tax free from the uk,its just not true and anyone who does will find it an expensive lesson.you can like me take 25% free of tax but thats it.
You should be able to get your pension gross from the UK. You normally have to provide fiscal residency certificates from the Portuguese authorities certifying that you are a portuguese resident - this is in terms of the Portugal UK double tax treaty. Normally you are able to recover tax withheld in the UK
 

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You should be able to get your pension gross from the UK. You normally have to provide fiscal residency certificates from the Portuguese authorities certifying that you are a portuguese resident - this is in terms of the Portugal UK double tax treaty. Normally you are able to recover tax withheld in the UK
well believe me you cannot.i have been trying since april to do that.my pension holder is one of the biggest and they say they have to apply paye,that they have no choice in the matter.in fact i say i should be able to withdraw 10,600 a year tax free as per my tax allowance.no chance they say the first payment i have to send a p45 for the current tax year with my tax code on it.i said i have been self-employed all my life and have never had a p45.in that case they say you will be taxed at 40% and have to reclaim it back off the tax man.living in portugal and having residency makes no difference at all they say.when i sold my business last year my accountant closed my tax account so how do i claim it back.luckly i am in a position where i don't need my pension to live on day to day but I'mam going to go to war with these muppets big time.i retired to portugal for the 10 year tax free break which i have for all the good it his doing me at the moment.
 

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pension ombudsman maybe worth pursuing
 

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well believe me you cannot.i have been trying since april to do that.my pension holder is one of the biggest and they say they have to apply paye,that they have no choice in the matter.in fact i say i should be able to withdraw 10,600 a year tax free as per my tax allowance.no chance they say the first payment i have to send a p45 for the current tax year with my tax code on it.i said i have been self-employed all my life and have never had a p45.in that case they say you will be taxed at 40% and have to reclaim it back off the tax man.living in portugal and having residency makes no difference at all they say.when i sold my business last year my accountant closed my tax account so how do i claim it back.luckly i am in a position where i don't need my pension to live on day to day but I'mam going to go to war with these muppets big time.i retired to portugal for the 10 year tax free break which i have for all the good it his doing me at the moment.
gobelelydoook
 

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if you mean the state pension,then its paid tax free because you have a £10,600 tax allowance before you pay any tax.
Regrettably your OAP is not paid "tax- free" it is paid without deduction of tax - there is a big difference. If you have any other income/pensions you will find that the amount of your OAP is deducted from your tax allowance leaving a very much reduced amount on your tax code which is then applied against your other income so, effectively, your OAP gets taxed that way.
 

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I am sorry but I must take issue with what you say in your post

Regrettably your OAP is not paid "tax- free" it is paid without deduction of tax - there is a big difference.


Absolutely agree

If you have any other income/pensions you will find that the amount of your OAP is deducted from your tax allowance leaving a very much reduced amount on your tax code which is then applied against your other income so, effectively, your OAP gets taxed that way.

This only holds if you are continuing to be taxed in the UK whilst permanently resident in another country.
If you have completed all the paperwork with the DWP and HMRC in the UK and elect to be "taxed" however it is or is not calculated in your new country then the UK will not deduct tax from your OAP pension.
HTH
 

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You may not 'elect' to pay tax in your home country - if you are liable to the tax rules of the country where you are resident, whether they are more or less favourable. Usually there are agreements between countries to smooth out any disadvantages
 

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You may not 'elect' to pay tax in your home country - if you are liable to the tax rules of the country where you are resident, whether they are more or less favourable. Usually there are agreements between countries to smooth out any disadvantages

Elect not a good choice of words.......point taken

Rob
 
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