Alan Collett

Wrong again PB. The State Pension IS taxed in the UK, although the UK personal allowance tends to cover the State Pension meaning no tax liability results. The Department of Social Security that is paying the State Pension liaises with the Inland Revenue to establish the extent to which the personal allowance has been used up, and the Revenue then issues a Coding Notice to the payor of the personal/company pension so that tax at the relevant rate can be deducted from the pension income.

You are also wrong on the tax free element that can be drawn from a personal pension, which is equal to 25% of the fund value. The balance of the fund has to be commuted into an annuity, which is taxed under the PAYE system if you are resident in the UK.

Regards.

pommie bastard

Okay what is personal allowance for a retired person in UK , also 25% can be equal to amount I said over a life time of payments but see where you are coming from if not paid in that over long a period.The thing you have not stated is tax to be paid on amounts drawn on Australia super if over limit allowed, also cut off point regarding personal wealth in Australia before you forfit state pension and become a what as known as a self funded pensioner.Personal wealth includes cars and any possessions in your home etc. .Still think Packer has the best idea pay sod all and tell them sod all.

UDS

Couple of points here, PB. First, non-residents don’t necessarily have a UK personal allowance – it depends on their nationality. If Juls is a UK national she’ll have a personal allowance even as a non-resident, but we don’t know this. Secondly, even assuming Juls will have a personal allowance, we don’t know whether it will cover her pension unless we know (a) how much that pension is (and remember it’s a works pension, not a state pension, so we’ve no idea what the level of pension is) and (b) what other UK source income she may have (e.g. rent from her former home in the UK, if she lets it out).

I’m astonished that you would post this:

“ Get real why would UK tax talk to Aussie tax , look at the fact Aussie state pensions are means tested so if you have too many pensions you will get no state pension . . .�

Apart from the technical point made by Alan, do you not realise that you have answered your own question here? The Australian age pension is means-tested, therefore the Australian authorities want to know what other means and income a pensioner has, therefore int the case of a migrant from the UK they have a good reason to ask the UK authorities. And, it will surprise no-one to learn, the UK/Australia double taxation agreement has information sharing provisions so that the Australian authorities can ask their UK counterparts, and they will get an answer.

Leaving the morality of tax evasion entirely aside, it has to be recognised that any tax strategy which depends on the authorities not acquiring certain information is obviously risky – the more so because, if they do acquire that information, you may face not only tax arrears but interest and penalties. And if, as seems to be the case, you’re not very familiar either with the tax rules applied or with the systems in place for operating them, it’s not possible for you to assess the risk associated with any tax evasion strategy.

Juls asked a straightforward question about the tax treatment of her works pension, and you posted a half-baked, ill-thought-out tax evasion strategy when, in truth, you had no real idea whether it would succeed, or what the consequences of failure would be. That’s not really helpful to Juls, and it tends to obscure more helpful responses from people who have read and understood her question, have thought about and are willing to give her a considered response. I suggest that if you’re posting this kind of stuff in the future you might start by saying “I haven’t a bull’s notion what I’m talking about, but I like to think that . . .�

Don

[QUOTE]you may face not only tax arrears but interest and penalties. QUOTE]

And last year the IR said it would press for imprisonment in serious tax evasion cases

UDS

[QUOTE]Originally posted by pleasancefamily:

Quote:

you may face not only tax arrears but interest and penalties. QUOTE]

And last year the IR said it would press for imprisonment in serious tax evasion cases

That relates to the UK. PB is advocating evasion of Australian taxes, and imprisonment is already an established part of the range of penalties applied in Australia. 31% of those convicted in the higher courts of income tax fraud go to prison.

In fairness, I would have guessed that evasion of tax by an individual on a UK pension is unlikely to be prosecuted as income tax fraud in the higher courts, but is more likely to be dealt with in the lower courts, or at an administrative level. Interest and penalties are more likely in practice to be imposed than a prison sentence.

Snickers

Just thought I would bring it back to the top

Jaj

    >On Wed, 09 Oct 2002 09:05:57 +0000, UDS wrote:
    >Couple of points here, PB. First, non-residents don’t necessarily have
    >a UK personal allowance – it depends on their nationality. If Juls is a
    >UK national she’ll have a personal allowance even as a non-resident, but
    >we don’t know this.


There's a general rule that non-residents of the UK have a personal
allowance if:
- they're British citizens; or
- citizens of an EEA member state; or
- citizens of a Commonwealth country.

That covers a lot of non-residents with with UK sourced income. There
are a few other categories too depending on the circumstances in which
you are abroad, haven't got the details to hand at the moment.

Jeremy

pommie bastard

If them nasy people at the tax office look at my tax returns over last 8 years , me thinks Old Pommie will become a true Australian ie a convict.
Better get out of here sooner rather than later , That tight sod Packer has got me in deep shite ,so much for his advice.

Juls

Thanks for all the advise, after reading all of your posts especially PB's we'll difinately be getting some independant advise about our pensions !

Thanks again, sorry that Alan & PB had a bit of a brawl thank the lord they weren't in a pub at the time!

Cheers
Julie & Darren.
Adelaide by early 2003