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Hello Allan, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.
Firstly, just to be on the safe side when you went to Thailand in 69 did you complete a Form P85 to the Inland Revenue as it was then? If you did not then you should do so immediately, but now, of course, to HMRC. Fortunately the form is available on the web and can be filed on line. On receipt HMRC will classify you as non resident. You notify them of your return to Blighty by letter.
You have done nothing illegal. Your son may return the moneys to you. All this is outside the scope of UK taxation.
I do hope that I have been able to set your mind at rest on this matter.
I do feel, however, that you have been a tad unkind to the Thai banking system. I have a That wife and she has never had trouble with their banks.
Too right Allan, if you don't you could find HMRC trampling all over you trying to tax you for moneys you earned overseas which the P85 procedure would automatically block. Just send in a P85 to your tax office with a note that you returned and all should be well. There is no time limit as to its submission.
The taxation of that lump sum appears a tad fishy. Are you on higher rates tax? 25% would be tax free leaving 9K liable to tax at your marginal rate.
Sounds all wrong to me. You would be on basic rate tax only on that level of income, but please tell me the annual sum received before tax on all your pensions. Remember, that under the Double Taxation Treaty between the UK and Canada the same income stream cannot be taxed in both jurisdictions. Any tax paid in Canada is allowed as a tax credit against any UK liability.
Absolute balderdash and piffle, typical HMRC incompetence. You were not due to pay any tax at all in 15/16 on an income of 7916, well below the personal allowance. You should have been refunded 2238 quid. You should take the whole matter up with your tax office by letter and request a repayment of over paid tax.
As I said Allan no tax is due. Even with the lump sum taken into account your tax bill for the year is of the order of a tad over 1400 quid so the 3K deducted from your lump sum is sheer gibberish. Take it up with your tax office.
The 30K you transferred is, providing you did the P85 action, outside the scope of UK taxation, being earned whilst you were non resident.
Forget about all those questions. All you are drumming into HMRC is that you left in 96. You cannot be expected to have kept that knowledge, after all it is over 20 years ago and well beyond HMRC's reach now.
That should cover you. You could also explain in your notification of return letter what is going on.
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No, say nothing about the transfer. Just explain in the letter why you are submitting the P85 so late.
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Thank you for your excellent support.