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bigduckontax
bigduckontax, Accountant
Category: Tax
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I am a UK citizen living abroad, i am 55 and would like to

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i am a UK citizen living abroad, i am 55 and would like to cash in my pension. I understand that I can cash in up to 25% without paying tax, and the rest will be taxed, and maybe, as a non resident, I could claim the tax back
What i need to know is how to proceed:
1) how to witdraw it all
2) how to find out how much tax i would have to pay in the 75%
3) how to claim tax back on it
It has been impossible to contact the inland revenue by mail or phone. I cannot travel for the time being, hence why I opted for using this advisory system
I look forward to your prompt reply
Veronica
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, Veronica, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. You apply to your pension provider to liberate your pension. 25% of what you receive will be tax free. The balance of 75% will be taxed at your marginal rates of tax. The question is silent as to the amount involved or your normal income so I cannot compute your possible liability. You reclaim the tax if you have overpaid either through your annual self assessment return or you can approach HMRC by letter in year for a partial refund. I do hope that you have found my reply of assistance.
Expert:  bigduckontax replied 1 year ago.
Don't shoot the messenger! I have explained the realities of the situation and its solution. The questioner has not made any follow up inquiry. I submit that my rating should be increased or the questioner elaborate further.
Customer: replied 1 year ago.
Hello. I find it difficult to communicate with the Inland Revenue. They do not answer phone or emails. I do not know my tax status in the UK. I am not a resident now (left 15 yrs ago). Hence why i opted for this serviceI would like to invest all the moneys in residencial property in the UK and wondered whether there are any tax incentives re property or sny other investment
Expert:  bigduckontax replied 1 year ago.
The Inland Revenue ceased to exist some years ago on amalgamation with HM Customs and Excise to from HMRC. Their failure to answer telephone calls and emails is notorious and has been the subject of Parliamentary scrutiny, without much effect. The only way to get anything out of that Department is by writing a letter., and even then the response time will be at lest a month. There are no incentives in investing in residential property in the UK, indeed, despite your non residence status, you will be taxed on any rental income received. You do, if you are an EEA citizen, have a personal allowance of 11K to offset the net rental income. Depending upon where you live and any Double Taxation Treaty in force any tax payable to the UK may be allowable as a tax credit against any tax levied in the country where you live against the same income stream. In the UK you can invest tax free in ISAs [GBP 15240 pa], Premium Bonds [50K] and some other products like National Savings Certificates. I do hope that I have shed some light on your question. Please let me have a positive rating. One small point, when you left the UK 15 years ago did you send a Form P85 to the Inland Revenue as they were then. If you did not then you should do so immediately, but, of course, to HMRC. Fortunately there is no time limit as the the submission of this form, it is available on the web and can be filed on line. On receipt HMRC will classify you as non resident and you will find dealing with that Department much easier.
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 1 year ago.
Thank you for your support.

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