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bigduckontax, Accountant
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I have been living and working in Norway years and

Resolved Question:

I have been living and working in Norway for many years and as such have paid my taxes to that country.
I am now a pensioner and have moved back to the UK three years ago.
In the meantime I have been paying tax to that country.
Starting this year I will still pay tax at a reduced rate than before on my pensions but my question is how much tax will I be expected to pay to the Uk under self assement and
what will I be taxed on.
regards
Nigel
Submitted: 11 months ago.
Category: Tax
Expert:  bigduckontax replied 11 months ago.
Hello Nigel, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. If you reside in the UK for over 183 days in any one tax year you are liable for UK taxation on your world wide income. The UK has a Double taxation Treaty with Norway which precludes the same income stream being taxed in both jurisdictions. This is achieved by means of tax credits, the tax deducted in one country being allowed as a credit against the liability in the other. The Treaty does not, however, protect you from differences in rates of taxation. Pensions are generally taxed in the country of origin so although you will have an UK tax liability thereon the Treaty will hopefully fully protect you. So you will have to self assess in the UK unless HMRC advise you to the contrary and declare your Norwegian income and tax deducted, presumably from your pension. As I said earlier you are taxable on your income world wide. If you are a citizen of an EEA country you do have a personal allowance to offset your UK tax liabilities. I do hope that you have found my reply of assistance.
Customer: replied 11 months ago.
And how does it stand with bank accounts which I have in Norway
Expert:  bigduckontax replied 11 months ago.
No problem whatsoever; any interest earned on these must be declared together with the tax if any on your annual self assessment tax return. If you intend to transfer substantial sums to an UK bank then you should warn them of the incoming funds and their source to preclude any money laundering inquiries which a large amount might attract. The UK has no exchange controls; nor does Norway according to Deloittes.
Customer: replied 11 months ago.
So everything I earn through my pensions Norwegian state and private plus interest on my accounts have to go on my self assement right. And do HMRS do the math when the exchange rate changes as the amount I earn in Kroner will vary when transferred to the my UK account
Expert:  bigduckontax replied 11 months ago.
You are correct in your surmise. HMRC usually use their own exchange rates which you can find here. I have used them and found them pretty accurate: https://www.gov.uk/government/publications/hmrc-exchange-rates-for-2016-monthly You will have to self assess, but depending on your level of income and the tax deducted by Norway, HMRC may well tell you not to bother. As Norway's tax rate is of the order of 28% and UK basic rate is 20%, unless you go into higher rates of UK tax, then you will actually be out of pocket as the tax credits from Norway will go against your UK liability and any unused is money sunk and lost.
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3360
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Expert:  bigduckontax replied 11 months ago.
Thank you for your support.

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