californiacation

I am living in the US and will be retiring and returning to the UK in four years, at the age of seventy.At that time my SS payments will amount to $1600.00 a month and my wifes will be $800.00,and this will be our only form of regular income.For UK tax purposes I understand that there is Personal Allowance of 10,500 pounds before any tax is deducted,my question is, does this allowance apply to both of us ie.10,500 pounds each?If the answer is yes I will be better off than I thought I was going to be.
Thanks for any help received.

dunroving

It depends on your age. The HMRC site explains tax allowances pretty clearly. Also the moneysavingexpert Web site has a helpful income tax calculator.

theOAP

I know you said US SS is your only regular income. The calculation for Personal Allowance also includes the UK State Pension, if you have any, and all income from interest, etc. from investments, as well as any other worldwide income (if you are resident). Be sure to include those as well.

Each person will have their own individual personal allowance.

callowman

My advice keep open a bank account here in the USA for your SS payments to go in and just withdraw from the UK with your bank card.
that way the UK dont know nothing about your US SS pension

dunroving

Things change and I wouldn't be surprised if this sort of illegal tax evasion becomes less possible.

theOAP

It's thanks to this type of cute trick that we've ended up with FATCA hung around our necks.

callowman

Well you know what they say chaps-do it to them before they do it to you and they WILL do it to you ! (whoever "they" are ....)

plus you earned it its your money look at the hundreds of thousands of immigrants claiming benefits and sending the money back ....
vote UKIP !

nun

In the UK the OP and their spouse will be taxed separately, there is no joint taxation for married couples as there is in the US, so that allowance is for each person. The US SS payments will be US tax free, but you must do a UK self assessment so UK tax can be paid.

The taxation of any UK pension payments or benefits will depend on citizenship

theOAP

It's good to see you back, nun.

californiacation

Thanks for all the useful replies,I do actually have a lump sum as well.At the moment, though, I still havnt decided upon where to retire,but the way the currency markets are going,I have a feeling that the pound and dollar will reach parity,and that would make the UK favourite to be my ultimate resting place.

dunroving

Don't hold your breath waiting for parity, I'm not convinced it will go that far. If you're not careful it could end up going back up while you're procrastinating. Either drip-feed or if you think $1.50 is good convert now and then stop checking the rate.