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TonyTax
TonyTax, Tax Consultant
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I was a UK resident who has retired to Belgium and have been

Resolved Question:

I was a UK resident who has retired to Belgium and have been out of the UK for a couple of years. I do not have any income in Belgium, I do not own a property but do have a belgian bank account. I receive a civil service pension from the UK and have rented out my UK house (with tax deducted).
Can you confirm which Country I send my Tax Return and what is position with tax deducted in UK and my personnal allowances.
Thank You
Submitted: 3 years ago.
Category: Tax
Expert:  TonyTax replied 3 years ago.
Hi.

Under Article 19 of the UK/Belgium tax treaty here, if your civil service pension is what is referred to as a "government service" pension, it will remain taxable in the UK as well as in Belgium. It would be taxable in Belgium alone if you were a Belgian national whilst not also being a UK national. The list here should tell you whether your civil service pension is a government service pension or not. Any UK tax paid on this pension will be deductible from any tax liability you have in Belgium on the same income under Article 23 of the tax treaty.

Your rental income will be taxable in both the UK and Belgium. See Article 6 of the tax treaty. Any UK tax paid will be deductible from any tax liability you have in Belgium on the same income.

As a UK national you will be entitled to the UK personal allowance as you will read here.

You will need to complete UK tax returns in order to re-claim any excess tax deducted from your UK rental income. It's also the best way to record any rental losses which you will be able to deducted from rental profits in later tax years. You should have your personal allowance offset against your civil service pension via a tax coding for cash flow reasons if no other.

I'm afraid that I cannot advise you on your Belgian tax return obligations but I suspect you will need to complete them to disclose your UK income.

I hope this helps but let me know if you have any further questions.
Customer: replied 3 years ago.

So basically I pay Uk tax and then higher rate in Belgium is that correct

Expert:  TonyTax replied 3 years ago.
You will get the UK personal allowance to use against your UK income and only the excess will be subject to UK tax. The UK personal allowance is currently £10,000 for those under 65 years of age.

As I alluded to in my previous post, I'm not an expert on the Belgian tax system and you would be well advised to seek out some local expert advice on your tax position there on UK source income. You will be able to deduct any UK tax paid on UK source income from any tax liability in Belgium on the same UK source income under the terms of the doubel tax treaty between the two countries.
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