jenny-laurel

Hello all, could anyone tell me the tax limit on taking a private UK pension in Ireland?
I relocated here in January and have a personal private pension earnt in the UK of which I intended to take as drawdown. The maximum I can take without paying tax in the UK is £11,600 GBP per annum. I have been informed by my Irish bank that I am to be taxed on this here in Ireland. I am resident here and have no other income.
This seems most unfair and I wondered if anyone had any experience of this or where ( other than contacting the tax office ) I could find any info?
If this is the case I would most definitely have to sell up and return to the UK.
Thank you in advance.

Moses2013

Yes it's taxed as it's seen as income. First of all you need a Tax Credit Certificate otherwise you'll be taxed at the highest rate. You should also speak to a pension advisor, as a lump sum of up to 200K would not be taxed.

jenny-laurel

Very many thanks. I will contact my FA with regards to this. In the UK a lump sum of 200k would be taxed but not when taken annually as part of a drawdown.
Best wishes.

Moses2013

Might be best to take a lump sum but your FA will know best.
Here some info from a pension provider


https://www.newireland.ie/pensions/o...at-retirement/

jenny-laurel

Very helpful link - thank you.

jenny-laurel

Hello all, just a quick update in case this situation affects anyone else who wants to move to Ireland and live on their UK private pension. I have just spoken to the Tax Office here in Ireland and they tell me a pension earnt in UK and paid into a UK bank account that is under the UK tax threshold is NOT liable for tax. Only if you start to work or claim any benefits would you need to inform the Tax Office. Otherwise, and to quote the very helpful man I spoke to 'this is your own personal affairs and of no interest to the Irish Tax Office'.

einrac

under uk tax threshold - not liable to tax
but if has to add uk state pension and any other earnings , if tax threshold exceeded it then is all taxable in the republic
regards
john

jenny-laurel

Thank you John, most helpful.
Kind regards
Jenny

EndaKenny

With the Irish Revenue its a case of; see no evil hear no evil.
Best approach when one deals with them is to say SFA about ones financial affairs. They are only interested in brown envelopes really.
UK earnings are just that; they don't need to know, nor do they wish to.
Its funny how the UK system conditions people to think we should be telling the Revenue all our private affairs isn't it? When in reality its none of their business. Irish Customs are even worse; seizing UK cars that their owners haven't paid VRT on. The biggest con of all. We are in the EU, have freedom of movement; but have to pay import tax, to register a car from one EU country to another EU country. And that is after being ripped off for motor tax, tax on fuel, car insurance.
Welcome to the banana republic.

grumpyray

I am a UK born resident in Ireland for the last 9 1/2 yrs. My only income is a UK public sector pension paid into my Irish bank account at the end of the month. Due to the rules on UK public sector pensions it is taxed in the UK only and cannot be transferred to Ireland. Ireland and the UK currently have a double taxation agreement in place meaning an income can only be taxed by one country. That may be renogiated post- Brexit. Not long after moving to Ireland the Irish Revenue Commissioners wrote to me demanding to know why I was not paying tax to the Irish government on my income. I had to spend 2 hours in my local revenue office with lots of my official documents before I convinced them of the legal position with regards to my pension. Since Brexit I have seen my income dwindling away due to the weak pound( I voted remain),and am considering the reality that I may have to sell up and return to the UK if it gets any worse.

Moses2013

The only question is what will happen in the UK after Brexit and will taxes/prices increase after leaving the EU. Who knows, but if you do have to sell up, at least you will get more money from your property sale. Then again if more people are forced to return to he UK, property prices will go up.