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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I am a retired civil servant from Northern Ireland living in

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I am a retired civil servant from Northern Ireland living in Spain. In 2014 I placed all my savings in 2 areas: an investment portfolio handled by Lloyd's Bank in Gibraltar and a Schroeders Fund (with Lloyd's Gibraltar as my agent). Both these vary in value as the months pass and I have no idea how to show these on my tax return. Can you advise, please? Also, I have an award from the civil service for an injury received in 2001. This is paid monthly without any tax reduction. When I queried this in 2001, I was told by telephone that it was a tax-free award but I can't find any reference to this in writing. When I asked the Inland Revenue in Northern Ireland how I should show this amount on my tax return, I was told to omit it entirely. I understand that I now must include this on my returns but I am somewhat nervous about this. Can you advise, please.
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Welfare benefits that cover Industrial Injuries benefits including Disablement Benefit, Reduced Earnings Allowance, Constant Attendance Allowance and Exceptionally Severe Disablement Allowance are non-taxable, so you can ignore them for tax purposes.

You may find information here helpful

https://www.citizensadvice.org.uk/tax/what-is-taxable-income/taxable-and-non-taxable-income/#h-non-taxable-income

You say you are retired and living in Spain.

As far as investment income goes, provided this income is received from a source outside the UK, then you don’t have to declare it when filing your UK tax return as it is not taxable in the UK.

You would show your Civil Service Pension on your UK Tax return as it is taxable in the UK.

I hope this is helpful and answers your question.

If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

Expert:  taxadvisor.uk replied 2 years ago.
Peter, if you are receiving Fund valuation statements showing Funds value and movements in/out say twice a year, they are for your information only.

I hope this is helpful.
Customer: replied 2 years ago.

Thanks for your answer. I have to complete a Spanish tax return annually so I will seek advice here regarding the reporting of investments etc., and omit these from my UK return.

With regard to the Injury benefit I receive from the NI Civil Service, this is not a National Insurance benefit but is paid to me through the Principal Civil Service Pensions Scheme (Northern Ireland)'s provisions for an Injury at work. In recognition of a potential claim for damages (which I will never actually make) I receive an annual allowance which is payable from the day after my (forced) retirement until death. It is paid by the Superannuation Branch of the Department of Finance and Personnel and is paid monthly without any tax reduction. There must be a similar scheme in GB. Am I obliged to start reporting this income to HMRC? I receive £25,000 per annum Injury Allowance and having to repay 40% tax on 13 years of these payments would create a real financial problem for me.

***** *****

Expert:  taxadvisor.uk replied 2 years ago.
Peter, thank you for your reply.

If you meet conditions as outlined here, then you don't have to report this income to HMRC

https://www.gov.uk/expenses-benefits-compensation-injuries-at-work



I hope this is helpful.
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Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.