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Income tax on pension

Income tax on pension

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Old Aug 17th 2008, 7:02 pm
  #1  
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Default Income tax on pension

If I had a small pension ( approx £6500) from my employer in the UK is it best to pay tax on this pension in the UK or Australia?

Or do I have to pay tax in both the Uk and Australia?

Or can I choose which country to pay tax in ?

If so which would be the most advantageous country to pay tax in?
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Old Aug 17th 2008, 9:10 pm
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Default Re: Income tax on pension

Originally Posted by cardmaker2
If I had a small pension ( approx £6500) from my employer in the UK is it best to pay tax on this pension in the UK or Australia?

Or do I have to pay tax in both the Uk and Australia?

Or can I choose which country to pay tax in ?

If so which would be the most advantageous country to pay tax in?
An australian resident (ie.on a PR visa) has to pay tax in Australia on all their worldwide income.

There is a 'double taxation' agreement between the UK and Australia so you would only need to pay tax in Australia.......you would need to arrange to become a non tax payer in the UK.
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Old Aug 17th 2008, 9:59 pm
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Default Re: Income tax on pension

Can I choose which country to pay tax in ?
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Old Aug 17th 2008, 10:53 pm
  #4  
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Default Re: Income tax on pension

Originally Posted by cardmaker2
Can I choose which country to pay tax in ?
Only to the extent that you can choose to pay UK tax and make up any difference in amount to the ATO, AFAIK.

My own pensions are remitted to me free of tax in the UK, sent over to my Oz account and I pay Oz tax here on them.

(And have just had a massive demand for underpayment last FY, but that's another story....)
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