Jamer

Hi,
Does anyone draw a UK military in Aus and if so how is it taxed? Further to this, if it is a disability pension and therefore tax free in the UK, how is it taxed in Aus?

Thanks JJ

ROMFT_WO2RN

Hi there,

Forces pensions can be made tax free in the UK (due to the double taxation treaty) by filling in form P85 when you leave. HMRC then apply a zero tax code to the pension. You may already have this applied as part of the disability pension deal?

Australia will then tax your pension at your nominal rate in Oz, assuming you declare it of course. Not sure if they particularly care that it's a disability pension as they are only interested in your worldwide income. Might be worth a call to the ATO?

Hope this helps

Jamer

Thanks for this; very useful. I'm sure the ATO will want to tax every penny but I'll drop them a line.

Cheers

JJ

rasen78

No worries

Using wifies log-on in case you're confused