British tax allowance
#1
Forum Regular
Thread Starter
Joined: Jan 2013
Posts: 56
British tax allowance
Hello people,I'm struggling to remember how to use the forum-it's been a long time!I don't know if this subject has been discussed,it's about the possibility of George Osborne cancelling the british tax allowance for expats in EU.Surely to do this would be discriminatory and against the "spirit of Europe".I for one have a local government pension which can't be exported to Spain.What does the forum think? Excuse me if this is a current topic.
#2
Re: British tax allowance
I can't help with your question but I've moved your thread to our Spain forum for you.
#3
BE Enthusiast
Joined: Apr 2005
Location: La Saucedilla, Chiclana
Posts: 920
Re: British tax allowance
I´m not sure if this is what you want but I´ll post it anyway.
http://britishexpats.com/forum/spain...nsions-840045/
http://britishexpats.com/forum/spain...nsions-840045/
#4
Re: British tax allowance
THe whole question of allowances for UK non residents is still under review.
It is almost certain that UK government pensions where tax is payable in the UK will retain the normal UK allowances.
However those pensions will have to be declared in Spain next year and although they will not be taxed directly, when included in the Spanish tax declaration it may result in an increase in the tax paid on the other income you receive such as the UK state pension etc.
It is almost certain that UK government pensions where tax is payable in the UK will retain the normal UK allowances.
However those pensions will have to be declared in Spain next year and although they will not be taxed directly, when included in the Spanish tax declaration it may result in an increase in the tax paid on the other income you receive such as the UK state pension etc.
#5
Just Joined
Joined: Nov 2014
Posts: 7
Re: British tax allowance
Hi Normaneddy
I'm new to the forum so you're not alone with trying to figure how to post properly out!
Again, I'm not sure if this is what you're after as you don't mention which tax allowance but my solicitor told me recently that there have been changes to the Spanish tax system Spanish Inheritance Tax Set To Change | Worldwide Lawyers might be worth an investigation? It doesn't affect myself or the wife just yet but I imagine it will for a whole load of people in this forum.
Cheers
Graham
I'm new to the forum so you're not alone with trying to figure how to post properly out!
Again, I'm not sure if this is what you're after as you don't mention which tax allowance but my solicitor told me recently that there have been changes to the Spanish tax system Spanish Inheritance Tax Set To Change | Worldwide Lawyers might be worth an investigation? It doesn't affect myself or the wife just yet but I imagine it will for a whole load of people in this forum.
Cheers
Graham
#6
Forum Regular
Thread Starter
Joined: Jan 2013
Posts: 56
Re: British tax allowance
Hi,Graham,my subject is about the possible withdrawal of income tax allowance for british expats mooted to happen in the forthcoming general election,and I state that the chancellor of exchequer could not "get away" with it as it would be contrary to EU policy.It's nothing to do with inheritance tax! Thanks anyway for the replies so far,I don't think Osborne can pull this off with anybody regardless of having a government/local gov. pension or not.
#7
BE Enthusiast
Joined: May 2013
Posts: 613
Re: British tax allowance
Hi,Graham,my subject is about the possible withdrawal of income tax allowance for british expats mooted to happen in the forthcoming general election,and I state that the chancellor of exchequer could not "get away" with it as it would be contrary to EU policy.It's nothing to do with inheritance tax! Thanks anyway for the replies so far,I don't think Osborne can pull this off with anybody regardless of having a government/local gov. pension or not.
#8
Re: British tax allowance
As Fred said the income tax allowance for ex pat Britons is under review. Reading through the various reports about this it is likely that if the majority of your total income originates in UK then you will keep the allowance.
Having said that the only income taxable solely in UK is a so called government pension, ie local authority, civil service etc.
Income that is taxable in both UK and Spain includes UK rental income. This means that if your tax allowance is removed you pay more tax on this income in UK. Your Spanish income tax payable on this income is reduced by the UK income tax paid and so it is swings and roundabouts and should not make much difference to you. However UK will retain the tax paid and be better off than Spain who will not be able to net off as much.
Having said that the only income taxable solely in UK is a so called government pension, ie local authority, civil service etc.
Income that is taxable in both UK and Spain includes UK rental income. This means that if your tax allowance is removed you pay more tax on this income in UK. Your Spanish income tax payable on this income is reduced by the UK income tax paid and so it is swings and roundabouts and should not make much difference to you. However UK will retain the tax paid and be better off than Spain who will not be able to net off as much.
#9
BE Enthusiast
Joined: Sep 2014
Posts: 323
Re: British tax allowance
Steve thats interestng.
Just to be clear- if one has a CIVIL SERVICE PENSION - its taxable ONLY in the UK?
Thanks
Just to be clear- if one has a CIVIL SERVICE PENSION - its taxable ONLY in the UK?
Thanks
#10
Re: British tax allowance
Spanish income includes UK rental income, interest/dividends from UK banks and companies, ISA interest, premium bond and lottery wins over a certain amount.
#11
BE Enthusiast
Joined: Sep 2014
Posts: 323
Re: British tax allowance
I see.
Would be my only income so sounds like I would just have it taxed in UK and no other deductions.
Would be my only income so sounds like I would just have it taxed in UK and no other deductions.
#12
BE Enthusiast
Joined: May 2013
Posts: 613
Re: British tax allowance
...
Income that is taxable in both UK and Spain includes UK rental income. This means that if your tax allowance is removed you pay more tax on this income in UK. Your Spanish income tax payable on this income is reduced by the UK income tax paid and so it is swings and roundabouts and should not make much difference to you. However UK will retain the tax paid and be better off than Spain who will not be able to net off as much.
Income that is taxable in both UK and Spain includes UK rental income. This means that if your tax allowance is removed you pay more tax on this income in UK. Your Spanish income tax payable on this income is reduced by the UK income tax paid and so it is swings and roundabouts and should not make much difference to you. However UK will retain the tax paid and be better off than Spain who will not be able to net off as much.
#13
Re: British tax allowance
That's right, but you will still have to make an annual tax declaration in Spain, even if it resulted in no tax being due.