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Any retired UK postmen/women tax resident in Spain?

Any retired UK postmen/women tax resident in Spain?

Old Jun 24th 2023, 1:14 am
  #31  
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Default Re: Any retired UK postmen/women tax resident in Spain?

I grabbed this from the web some while ago (Oct 21) and under these terms UK annuities absolutely do not qualify.

As you may be aware, the Hacienda is doing an audit (going back to 2017), on residents who have been declaring pensions income as an annuity.

Well they have finally clarified what conditions a pension must fulfil to be classed as an annuity here in Spain, and having a statement from a UK provider stating it is an annuity is not enough…they must meet the following criteria:


The main one being that the annuity has a SURRENDER VALUE.

The information required by the Spanish tax authorities:

1) Date of contract and date of commencement of annuity income
2) Identification of you and the company
3) Contingencies covered
4) Redemption conditions and surrender value (must have a surrender value)
5) Duration, amount and form of benefits
6) Form of premium contributions – periodic or single payment


If the tax office contacts a client they have TEN DAYS to present the information and lodge an appeal. To appeal against this decision, the client must produce a certificate from each company with the above six details (but specifically with the Surrender Value).

Christina Brady – Blacktower Financial Management

Last edited by Notdunroamin; Jun 24th 2023 at 1:25 am.
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Old Jun 24th 2023, 1:40 am
  #32  
 
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Default Re: Any retired UK postmen/women tax resident in Spain?

I had a tax investigation recently and included in the data provided by HMRC was the income from my annuity (considerably more than I have declared for 23 years) and they raised no issues with my declared discounted income figure.

Bearing in mind that the staff at my local tax office do not have a clue about UK government pensions (they claim that only UK police pensions are exempt), I can’t see them coping with UK annuities.
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Old Jun 24th 2023, 2:50 am
  #33  
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Default Re: Any retired UK postmen/women tax resident in Spain?

Lets hope more of them don't get wise!
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Old Jun 24th 2023, 3:45 am
  #34  
 
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Default Re: Any retired UK postmen/women tax resident in Spain?

Not a lot of chance of that happening! The rule about declaring govt pensions was in the 1972 double tax agreement, but some senior official didn’t understand it and told everyone to ignore it. It stayed that way until the new DTA came out where the wording was more explicit.
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Old Jun 24th 2023, 4:13 am
  #35  
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Default Re: Any retired UK postmen/women tax resident in Spain?

The very first year I claimed relief for my annuity I was actually going through the process in the tax office - the 'clerk' called for the supervisor and after a conflab, she disappeared and returned with a huge book (this was years ago, probably online by now) she looked up my annuity policy details - said it was not liable for Spanish relief but as it was so little amount she would accept it and I have claimed it ever since.
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Old Jun 24th 2023, 6:15 am
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Default Re: Any retired UK postmen/women tax resident in Spain?

That would have been before they came under closer scrutiny possibly as fallout from the misselling of some QROP's etc. as temporary annuities qualifying them for as much as 85% tax relief.

https://www.theolivepress.es/spain-n...ing-time-bomb/
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Old Jun 24th 2023, 9:54 pm
  #37  
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Default Re: Any retired UK postmen/women tax resident in Spain?

Originally Posted by Fred James
That refers to the need to declare and has nothing to do with the personal allowances.
Thanks for correcting me Fred James, Barriej, Notdunroamin.

Still navigating the Spanish tax system and learning along the way from this forum.
Actually it was a Lynn R post that first got me looking into this.

I might post a separate question to clarify my understanding!
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Old Jun 24th 2023, 10:03 pm
  #38  
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Default Re: Any retired UK postmen/women tax resident in Spain?

Originally Posted by PoloMarco
Thanks for correcting me Fred James, Barriej, Notdunroamin.

Still navigating the Spanish tax system and learning along the way from this forum.
Actually it was a Lynn R post that first got me looking into this.

I might post a separate question to clarify my understanding!
Best not to open another thread on the same subject. Better to put a post in this thread to check your understanding.

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Old Jun 24th 2023, 10:32 pm
  #39  
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Default Re: Any retired UK postmen/women tax resident in Spain?

My follow up would be on the subject of personal tax calculation and allowances including those for low income, rather than “Any retired UK postmen/women tax resident in Spain?”

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Old Jun 24th 2023, 10:52 pm
  #40  
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Default Re: Any retired UK postmen/women tax resident in Spain?

Originally Posted by PoloMarco
My follow up would be on the subject of personal tax calculation and allowances including those for low income, rather than “Any retired UK postmen/women tax resident in Spain?”
Ah!!! Not really relevant in this thread then. Start another on by all means.

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