John0956

I have followed the discussion with interest. We hope to move to Malaysia soon.
Having had an exchange of letters with HMRC I am more amused at the attitude on pension taxation! Because Malaysia will grant me my pensions tax free HM government object. As a result my 2 government pensions are to be taxed at source but my private pension is tax free. hmm! Logical?hmm
The inspector tells me that this is the result of the failure of the 2 governments to agree satisfactory terms on the taxation of their respective gov pensions in the Double taxation Agreement. Wonder how many malays retire to the UK?
Frozen pensions is simply a scam to reduce outflow of money. It is absolutely correct to say that there is no state pension fund in the UK. All money collected from NICs is immediately paid out. But I dont remember anyone warning me in my younger days that it would be frozen if I retired abroad to certain countries.
DJOERK might like to consider this in her next outburst. Many of the EEC arrivals are now wandering out of the UK, they dont like it. However if they have established any rights to Social security benefits during their residence the EU has ordered the UK to continue payment as long as they are still in the EU. We currently pay £60millions, and rising, under this absurd rule.

djoerk

I thought our Private as well as State Pensions were taxed before they left the UK - and that you had to claim back tax on your Private Pension if you became a Non-Resident -so long as you stayed out of the country for more than 6months (or better still permanently!). Could you let me know - as you have had the pleasure of dealing with HMRC on the issue. I have not as yet, as I am newly retired - but planning my escape.

I knew about the EEC payments including child support being paid to those from the EEC in the UK with children in the EEC. From what I read from this site I assumed (and don't say the obvious !) that knowledge and intelligence was the norm - hence the explosion! There are people in the UK who deserve alot more help from the taxpayers - the mentally and physically disabled, the elderly, to name but a few. However, the abuse that goes on denies them the monies which they deserve and I would freely give - and do - in Charitable Donations.

You may want to read this news link - which says it far better than another outburst from myself :-0

http://www.moneyhospital.co.uk/archi...51/?code=MH158

Tra-la - another angle I have missed - besides the Tax situation.

Best wishes

John0956

I have just looked at my HMRC letter and it simply clarifies the tax position and says contact me when you move. Certainly my pensions are paid to me here in Cyprus gross..
You may have missed my point regarding EU citizens and benefits. The UK has to pay not only while they are in the UK but also when they return home!!!!As long as they remain entitled.

John0956

On leaving the UK and establishing your residence abroad you write to the Overseas tax office in nottingham. They send the paperwork, you take to your new tax office for stamping and return it to UK. You then become "non resident for tax purposes" and pension tax stops.

djoerk

Thanks John >>> that was quick of the mark in a double guess on my next question.

I am looking forward to my"awfully big adventure" (Peter Pan ) - to attempt that life (or grey matter) does not grind to a halt in retirement.

Hope you have resolved your Melaka Agents' silences : you may have seen Shane saying the best way is to go there and drive around .... Good luck in your search.

Best wishes

Old Lob

Bowsher is a mall village beneath the mountains at the edge of Muscat in the Sultanate of Oman. It is a beautiful place with small fields irrigated by an ancient Falaj system. During the season it is the ideal place to be if you love interactions with mosquitos!!

ray2gill

If you live in a tax free country then you don't have a ax office to take any forms to. We just signed the forms and sent passport copies plus copies of our labour cards. We haven't paid tax on the UK for the last 11 years but then we don't have any UK income.

Pensions are UK income and as such taxable depending on the country you are living in and reciprical agreements. In OZ you either pay in the UK or Australia but you will pay tax on it if not there some where else. It's a case of finding out which gives the largest tax free allowance and what the lowest tax rate is.

djoerk

Death and Taxes - they say - are the only two guarantees you have in Life!

Thank you for the Info.

ray2gill

How very true - one you try and stave off as long as possible and the other you try to keep to the barest minimum!

John0956

I am confused. If you live in a tax free country with no UK income why did yiou even bother with the paperwork? Why do you want to establish non res for tax when you dont have taxable income. But Djoerk will so she needs to deal with it. Malaysia has a tax office. Malaysians pay tax, retired Brits in Malaysia dont, so the UK taxes state pensions. Private pensions not! Non res for tax purposes gets your private pension tax free.

ray2gill

We did have a UK bank account which we did feed money into to pay things like National Insurance contributions and other standing orders as they are a nightmare to organise there.

This account therefore acrewed small amounts of interest which was paid gross otherwise it would have been paid net and we culd have had to complete tax returns extra to get the tax back.

katongkaren

Just in case anyone finds this of use -

RE inheritance tax/estate duties, we are out of the UK 3 years now and we've been advised by 2 lawyers that we will pay no inheritance tax - it is possible. Thailand, where we live and have a house, has no such tax (Thai lawyer will apply our Thai wills). Singapore, where we have our bank accounts, has just abolished inheritance tax this year (Singapore lawyer will apply our Singapore wills). No assets to speak of in the UK.

Re private pensions and tax, have been advised that once I have been out of UK for 3 full tax years (2011 by my reckoning) I can move my frozen private pensions to a QROPs scheme outside the UK, possible offshore Channel Islands or offshore Singapore - and HMRC does not have to be informed and no UK tax to pay. **I think Oz has quite a lot of QROPs schemes but not sure about the tax situation there.

ray2gill

[QUOTE=katongkaren;6373781]Just in case anyone finds this of use -

I can move my frozen private pensions to a QROPs scheme outside the UK,

Why would your private pension be frozen? It is only the UK State Pension as far as I am aware which is frozen.

Also I believe that once you move your private pension via QROP you cannot transfer it back again should you wish to return to the UK.

For death duties etc I think it's a case of domicile which counts not residence they are two different things as far as the tax office are concerned. You may be a non resident but if you have anything in the Uk or a will which states you wish to be buried there or a bank account they consider that an interest and will charge you or your estate.

They never let go!!!!

katongkaren

[QUOTE=ray2gill;6374318]
well spelt out - thank you. Sorry I've probably misled re frozen private pensions. These are old private pensions I used to pay into in the UK and are now termed as "frozen" since I am no longer in the UK.

Re domicile, you are probably right and maybe it's because I will not be going back to the UK, alive or dead which takes me out of their hands.

Roger13

I thought the main complaint was that some Pensioners overseas DO get the same increases as UK Residents.
I do not have the Lists of different Countries to hand - can someone tell us.
Whilst some Commonwealth Residents do not qualify for Increases - some Non Comonnwealth Residents do qualify.
It is this Illogical difference that is surely unfair - and which I thought the
petition should be based on
Roger