How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask bigduckontax Your Own Question
bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4094
Experience:  FCCA FCMA CGMA ACIS
75394688
Type Your Tax Question Here...
bigduckontax is online now

I will be retiring soon from a pension scheme based in the

Resolved Question:

I will be retiring soon from a pension scheme based in the UK. However, I don't intent to live in the UK; I will live insteatd eitheir in Spain or Portugal. My question is: if I am not resident nor domicilied in the UK, do I have to pay income tax on my pension there?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.
When you leave the UK send a form P85 to your tax office. HMRC will then make you non resident fro the tax year following and in addition split the tax year of departure into two parts, one resident and one non resident. Once non resident you should not have to pay tax on a pension received, but you may have to contact the tax office who issues your tax code to make sure your pension provider uses a NT code, thus deducting no tax. Remember, once you have moved abroad you may as a general rule only spend 91 days in the UK in any one tax year on visits etc without becoming liable to UK taxation again.
However, some pensions are always liable to UK taxation, for example those paid by government. some local authorities and other public bodies. If you have this type of pension you will have to rely on the Double Taxation Treaties the UK has with many countries and use the tax paid as a tax credit against any taxation liability in your new country of residence under these treaties. Of course as an EU citizen you can live and work anywhere within in the EU. Spain and Portugal are littered with ex pats as you probably know!
Domicile is quite a different kettle of fish from residence. For example if you come into the UK you dont achieve domicile for, if I recall, 17 years; don't ask me why and other countries have different rules on the subject. Residence is the usual trigger to taxation.
I do hope I have shed some light on your proposed position for you.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 3 years ago.
Thank you for your support.