Re: Pensions /tax
 

Can I tag another question onto this ?

My missus has a £8,000 UK Teachers pension so that will be taxed in UK

Soon she will get her state pension and other bits which will be about £13,000. This will be taxed in Spain no doubt.

Will she get the full tax allowance from both countries ? Or are they somehow combined ?

Ta :)

Re: Pensions /tax
 

She will have to declare all income gross then the tax she has paid in UK will be discounted from her liability in Spain.

Some regard having a government pension taxed in UK as some sort of bonus but it isn't and can be quite the contrary as the gross calculation can push them into a higher tax bracket meaning the tax they eventually pay can be more than the sum of what they paid in UK plus that due on other income in Spain.

Re: Pensions /tax
 

No UK income tax will be paid on a Crown Pension of 8k because it is well under the UK personal allowance of 12,570.

Yorick's wife will need to declare her state pension and "other bits" on her Spanish tax return in the Rendimientos de Trabajo box. She should also declare the Crown Pension in the Renta Exenta box. Both my husband and I have UK Crown Pensions and get the full UK personal allowance against them (both are under the allowance so no tax paid in UK). My husband declares his state pension (higher than the basic because of SERPS) and a small annuity pension on his Spanish return and pays either no tax at all or a tiny amount (thanks to the low income allowance). My state pension plus a larger final salary pension (not a Crown one) means I no longer quality for the low income allowance so pay much more Spanish tax. I get the normal Spanish tax allowance of €6,700 plus the €2k allowance for general expenses. She will need to sort out her Double Taxation status if this has not already been done.

Re: Pensions /tax
 

True however the principal stands.

Re: Pensions /tax
 

A tax related question which I thought I would ask on this open thread.
I know that as far as ISAs and Premium Bonds go although tax free in UK any interest or winnings must be declared for tax in Spain, I comply with that. However due to extremely poor interest I was earning on a UK ISA I closed one last year and took out a 3 year savings bond with Ns&i improving interest income significantly even after paying tax. My question is do I declare interest on that to Spain or the UK ( I do submit a UK tax return as I have income from a property which we rent out) as well as Crown pension all be it that is dealt with as PAYE. I was of the view that interest on UK savings was declared for tax in Spain and if taxed in UK there is a £1000 allowance on interest before tax. I am confused as I read online something that leads me to believe that interest on UK savings should be declared for tax to HMRC. If that is the case should I pay tax on the interest to UK and declare it to Spain as UK tax paid or declare in Spain and inform UK spanish tax has been paid? From the Ns&i site as its a 3 year bond and locked for 3 years although they issue annual interest it is only declarable for tax when the 3 years is up and money paid back with interest. That being the case for UK tax it would seem that one will lose out on the annual £1000 tax allowance on interest?
I just thought I would ask before phoning and speaking with HMRC.

Re: Pensions /tax
 

Please ignore above as now resolved
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