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Change approved to UK Pensions

Change approved to UK Pensions

Old Aug 3rd 2014, 4:03 am
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Default Re: Change approved to UK Pensions

Interesting article on the subject of the new pension amounts quoted have changed a bit but overall gives all the information if you have the time to read through it
www.ifs.org.uk/comms/r82.pdf
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Old Aug 3rd 2014, 5:01 am
  #32  
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Default Re: Change approved to UK Pensions

Originally Posted by CapnBilly
etc etc.

This will be the least amount you will get under the new State Pension rules."
Does that mean someone who is on the max basic now with 30 years will just stay the same and will they have the possibility to buy the extra 5 years to get the max?
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Old Aug 3rd 2014, 5:13 am
  #33  
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Default Re: Change approved to UK Pensions

I think if you have below the 35 qualifying years you divide the £146 or whatever it will be by 35 and multiply that by amount of years you have I.e. 30 as a guide. But depends if you have Serps or have been contracted out. The link I put above explains all be it lengthy.
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Old Aug 4th 2014, 7:49 pm
  #34  
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Default Re: Change approved to UK Pensions - NEW Spin

Originally Posted by bobd22
I think if you have below the 35 qualifying years you divide the £146 or whatever it will be by 35 and multiply that by amount of years you have I.e. 30 as a guide. But depends if you have Serps or have been contracted out. The link I put above explains all be it lengthy.
Hi As OP if I may, I'd like to add a new twist to the discussion, still on topic of pension changes... however not the state pension this time.

(Lets hope this doesn't become another QROPS discussion though!)

Here is what I have read on the net - below

Another bit of bad news for us non UK residents within 'shoutiong distance' of the pension -more late changes.

Jon

UK Budget 2014

20th March 2014

Although not announced in the chancellor’s speech. There are a number of reforms to pensions that will directly affect UK non residents.

If you are in a Final Salary, also known as a Defined Benefit pension scheme. Take note the option to transfer your pension is to be removed.

The Government also intends to abolish tax allowances for non UK residents. So pension benefits you take in the UK would be taxed up to the full marginal rate.The current maximum rate is 45%.

Without a UK tax allowance, you will now pay tax on the whole amount.

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Old Aug 4th 2014, 8:55 pm
  #35  
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Default Re: Change approved to UK Pensions

Prob doing that because so many people that can afford to leave the UK do so. They will hope the pensioners stop here and spend their savings and pension rather than take it abroad like so many are doing and planning to do.

With so many Europeans coming in with nothing and claiming benefits for themselves and their family who are not even in this county also using the NHS and so many leaving who have money it cant possibly carry on!!!

The norm in Britain is to close the door after the horse has ran away!!!
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Old Aug 4th 2014, 9:36 pm
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Default Re: Change approved to UK Pensions

I may be reading that last bit wrong but is that not to apply to UK Non Residents coming to the UK with income earned from outwith the UK, not UK Expats living within the EU with income earned within the UK i.e. Government pension. It is already known that the old method in Spain of a government pension being allowed a UK and Spanish tax relief has stopped. Surely one would ensure they drew their pension lump sum etc prior to making themselves UK non resident, also as most such final salary pensions these days are government pensions then there is no option but to pay that in the UK, or are you assuming this means that in such cases the UK would give them no allowance. That being the case cant see many Servicemen, Police, Fire or Teachers touching becoming resident in Spain!

Last edited by bobd22; Aug 4th 2014 at 9:50 pm. Reason: Addition
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Old Aug 5th 2014, 2:06 am
  #37  
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Default Re: Change approved to UK Pensions

Originally Posted by bobd22
I may be reading that last bit wrong but is that not to apply to UK Non Residents coming to the UK with income earned from outwith the UK, not UK Expats living within the EU with income earned within the UK i.e. Government pension. It is already known that the old method in Spain of a government pension being allowed a UK and Spanish tax relief has stopped. Surely one would ensure they drew their pension lump sum etc prior to making themselves UK non resident, also as most such final salary pensions these days are government pensions then there is no option but to pay that in the UK, or are you assuming this means that in such cases the UK would give them no allowance. That being the case cant see many Servicemen, Police, Fire or Teachers touching becoming resident in Spain!
I would really like this to be clarified, abut the UK tax allowance if you live in Spain.The effect could be devastating!
When does it come into being?
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Old Aug 5th 2014, 6:39 am
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Default Re: Change approved to UK Pensions

I suppose in reality it would only be of interest to those with Government pensions as others including state pension should be declared in Spain anyway. Also as I said those with Government pensions have already lost the double allowance. Surely though if the income is earned in the UK as in Government pension then you must get the basic allownce , which is then offset against Spanish tax on other income. Maybe Fred will be able to confirm the situation?
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Old Aug 5th 2014, 7:57 am
  #39  
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Default Re: Change approved to UK Pensions

Originally Posted by bobd22
I suppose in reality it would only be of interest to those with Government pensions as others including state pension should be declared in Spain anyway. Also as I said those with Government pensions have already lost the double allowance. Surely though if the income is earned in the UK as in Government pension then you must get the basic allownce , which is then offset against Spanish tax on other income. Maybe Fred will be able to confirm the situation?
Those with Government pensions have already lost the double allowance?
Please explain.
Surely those with government pensions have the UK allowance, and for other pensions they have the Spanish allowance?
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Old Aug 5th 2014, 7:59 am
  #40  
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Default Re: Change approved to UK Pensions

The way I read the consultation document, people in receipt of a government pension would still retain a personal allowance, so would not be affected.
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Old Aug 5th 2014, 8:02 am
  #41  
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Default Re: Change approved to UK Pensions

Originally Posted by Neptuno
Those with Government pensions have already lost the double allowance?
Please explain.
Surely those with government pensions have the UK allowance, and for other pensions they have the Spanish allowance?
I'm sure Bobd22 can answer this, but my understanding is that he is referring to the fact that from 2015 government pensions will have to be declared in Spain, and will be used to work out your marginal tax rate. This rate wil then be applied to income which is taxable in Spain.

I posted about this year when the draft DTA was published.
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Old Aug 5th 2014, 8:03 am
  #42  
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Default Re: Change approved to UK Pensions

Duplicate post.

Last edited by CapnBilly; Aug 5th 2014 at 8:05 am.
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Old Aug 5th 2014, 8:05 am
  #43  
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Default Re: Change approved to UK Pensions

Originally Posted by CapnBilly
I'm sure Bobd22 can answer this, but my understanding is that he is referring to the fact that from 2015 government pensions will have to be declared in Spain, and will be used to work out your marginal tax rate. This rate wil then be applied to income which is taxable in Spain.

I posted about this last year when the draft DTA was published.
So someone with a government pension is being taxed twice in reality, even though it's said they 're not
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Old Aug 5th 2014, 8:19 am
  #44  
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Default Re: Change approved to UK Pensions

Originally Posted by Neptuno
So someone with a government pension is being taxed twice in reality, even though it's said they 're not
No, they may be paying a higher rate on income that is taxable in Spain.
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Old Aug 5th 2014, 8:43 am
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Default Re: Change approved to UK Pensions

Originally Posted by CapnBilly
I'm sure Bobd22 can answer this, but my understanding is that he is referring to the fact that from 2015 government pensions will have to be declared in Spain, and will be used to work out your marginal tax rate. This rate wil then be applied to income which is taxable in Spain.

I posted about this year when the draft DTA was published.
Yes that is what I meant, should have said is to be stopped.

Last edited by bobd22; Aug 5th 2014 at 8:50 am.
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