Tax on pensions in uk

Old Aug 24th 2016, 8:16 am
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Default Tax on pensions in uk

Hello
Can anyone please tell me the approximate tax percentage levied on pensions in the uk.Thinking of moving back but worried that may lose too much money in tax and not have enough to live on.
Thanks and best regards
Siskin
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Old Aug 24th 2016, 8:40 am
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Default Re: Tax on pensions in uk

Originally Posted by Siskin View Post
Hello
Can anyone please tell me the approximate tax percentage levied on pensions in the uk.Thinking of moving back but worried that may lose too much money in tax and not have enough to live on.
Thanks and best regards
Siskin
It's exactly the same allowance as for working people, so the first £5000 is free of tax, then the banding starts.
Rates here..

https://www.gov.uk/government/public...ds-for-2016-17
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Old Aug 24th 2016, 9:34 am
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Default Re: Tax on pensions in uk

Assuming that you mean pension income, the personal tax-free allowance is £11k for 2016-2017.
As per the table in Mike's post, the slice above £11k is taxed at 20%.
Dividends and Interest receipts have slightly different calculations.
Sorry, I just read your previous posts.
Is this the same question that you asked in February regarding how much additional tax you may be asked to pay in the UK after you have already paid tax in Luxembourg?
If you declare your Lux. income and tax paid to HMRC then you possibly would not be required to pay again in the UK.
It is possible that nobody can answer your question until HMRC look at your tax return and decide what to do.
Will you be paying for other things in Luxembourg i.e. healthcare or S.S. contributions?
You would not need to pay these in the UK.

Last edited by cyrian; Aug 24th 2016 at 9:45 am.
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Old Aug 24th 2016, 11:07 am
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Default Re: Tax on pensions in uk

Assuming you are taxed on an arising basis then 90% of any foreign pension is taxed by HMRC.

If you are UK tax resident you are probably going to pay HMRC first and then take tax credits against any tax due in another country, you will need to look at the relevant tax treaty and domestic tax laws to work out the details.
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