How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

, I took early retirement in Feb 2014. I had three private

This answer was rated:

Hi, I took early retirement in Feb 2014. I had three private pensions which I took the 25% tax free lump sums on. I am drawing a monthly pensions from 2 of them. The other was an annuity which due to the pending changes in April this year, the company allowed me to purchase an annuity for one year, so I could make up mind what to do with it post the budget 2015,
My main concern is that I am thinking of applying for residency in Spain before April this year, as I haven't spent the whole of the tax year resident in the UK, I want to make absolutely sure that the UK TAX Office cannot suddenly tax my previously taken Tax free lump sums? I did check with tax office and they said no, but were very offhand and I wanted to double check. Thanks Sue

I don't know what makes you think that there is a possibility that your tax free lump sums are at risk because you might move abroad in the same tax year but that is certainly not the case.

If you moved to Spain and were given non-UK resident status, that would not impact at all on the tax free sums you have already taken or your choices as to what to do with the remaining one on which you took a one year annuity. However, you should take advice as to what the tax situation is in Spain , in particular as regards ***** ***** you have yet to make a decision on. Take a look here for some commentary on non-residents and UK pensions.

UK source pensions only remain liable to UK tax for non-residents if they are derived from UK government service jobs. The cash lump sums would still be tax free even for government service pensions. If they are not so derived, then you apply for an NT (No Tax) code to be operated against each one. There is a list of government service occupations here. The notes here provide some explanation.

I hope this helps but let me know if you have any further questions.
Customer: replied 3 years ago.
Thanks for your prompt reply, as long as the tax free lump sums remain tax free then that is fine. The tax person I spoke to at HMRC was also at a loss to understand why I would think that they would try to claw the tax back! I think I am looking for problems that don't exist. Yes I will be taking advice in Spain.
Many thanks, ***** ***** be able to sleep well now
Regards Sue
Thanks and good luck.
TonyTax and other Tax Specialists are ready to help you