Tax on a UK Company Pension

[Dannie Boy]

I will be retiring later this year and moving to Hua Hin where I already own a house. From when I retire I will receive my company pension from what is a UK registered company and what I would like to know from others in similar circumstances is, do you have to pay UK tax on the pension at source or can you elect to have it taxed in Thailand (on the basis that Thai tax rates must be lower than in the UK?).

I am already clasified as non-resident for UK tax, having worked in the Far East for a number of years, so I dont have to worry about being out of the UK for a complete tax year.

Hope to hear from somebody who has already experienced this situation.

Thanks in advance

[STEVE G]

I'm not in a similar situation, but I'm also non-resident for the UK and I understand that there's a scheme by which you can move the pension into certain recognised offshore schemes and then handle your own tax in the country that you're living in.
I'm no expert on this but have a look at QROPS.

[PeteC]

I posted this in Current Affairs on Sunday. It may be of some help. Pete

http://www.huahinafterdark.com/forum/vi ... 35&t=17072

[PET]

I'm not in a similar situation, but I'm also non-resident for the UK and I understand that there's a scheme by which you can move the pension into certain recognised offshore schemes and then handle your own tax in the country that you're living in.
I'm no expert on this but have a look at QROPS.

You are absolutely right SJ and QROP'S is a good way to go.

It needs to be a QROP that HMRC recognises as being an overseas pension scheme and as far as UK tax is concerned a person has to have been resident outside the UK for 5 years before the tax benefits and the very many other advantages that a QROP'S could well provide to a person. kicks in.

[Dannie Boy]

Thanks for the replies so far and the info on the QROP's option is something I will follow up with - if I can avoid legally avoid the taxman I will, if not...........

[margaretcarnes]

When working out your options don't forget that at 65 your UK tax free allowance (coding) increases, and that your UK State Pension is also counted as income for tax purposes.

[paulsimkiss]

Hi QROPS is fine if your pension fund is in the region of GBP 50,000 or above.

[littlebird]

A government pension scheme (eg NHS pension) can only be paid into a UK bank account although you can reclaim tax after a period of 4 years abroad if you are in the UK for less that 90 days (averaged over the previous 4 years I believe.

[Big Boy]

A government pension scheme (eg NHS pension) can only be paid into a UK bank account although you can reclaim tax after a period of 4 years abroad if you are in the UK for less that 90 days (averaged over the previous 4 years I believe.

Tell us more please. I retire next year, and that could be quite nestegg to receive after 4 years.

[lindosfan1]

littlebird wrote

A government pension scheme (eg NHS pension) can only be paid into a UK bank account although you can reclaim tax after a period of 4 years abroad if you are in the UK for less that 90 days (averaged over the previous 4 years I believe

Taken from the HMRC site

Pensions paid for former service to the UK Government are known as Government Service Pensions. Pensions paid for former employment with the H M Forces, Civil Service and Foreign and Commonwealth Office are all regarded as Government Service Pensions.

If you are still unsure you should contact us giving the name of your former employment and the payer of your pension.

Usually Government Service and Local Authority Service Pensions paid to British nationals living overseas remain taxable in the UK. You will still be eligible to receive full UK Personal Allowances and reliefs.

The main exceptions are Australia, Canada, New Zealand and Cyprus where exemption for Government Service and Local Authority Service Pensions can be claimed.

If an individual is a national of and resident in an overseas country, exemption under a Double Taxation Agreement may also be due for a Government or Local Authority Service Pension

Unless the system has changed in the last 4 years, and has not been published, government pensions remain taxable in the UK

[Big Boy]

Wrong answer lindosfan .

Seriously, I was hoping that littlebird had found a new regulation. Never mind, I'll have to suffer retirement in poverty

[lindosfan1]

The one advantage you retain your allowances which increase when you get to the age of 65.

[PET]

Hi QROPS is fine if your pension fund is in the region of GBP 50,000 or above.

Why, when probably over 90% of private pensions are invested in various Funds, where one can choose Low, Medium or High risk or a mix of them, so size is immaterial ?

[littlebird]

Nope sadly the regulations regarding certain UK pensions have not changed.
After a period of 4 years out of the UK and European Union you can apply for rebates as long as you spend less than 90 days per year in the UK - this is cumululative so over the period of 4 tax years (reassessed yearly on a rolling basis) your total time in the UK (or EU) cannot exceed a total of 4 x 90 = 360 days.
There are some entitlements to state benefits and allowances which change if you claim non residential status
An excellent place to get all to information is the UK website Directgov (.co.uk)

[hhfarang]

Seriously, I was hoping that littlebird had found a new regulation. Never mind, I'll have to suffer retirement in poverty

You'll be in good company BB!