Thread: UK pensions taxed at 20%?

Originally Posted by Thormaturge

^
I would support withdrawing the allowance for expatriates if the State pension were made tax-free.

British politicians will say that the state pension is tax free. This is based upon the guaranteed minimum pension (GMP) being less than the current personal tax allowance.

Any other income such as a private/occupational pension added to the GMP that exceeds the personal allowance will be taxed, not the state pension.

If changes are implemented it would benefit myself if the state pension were taxed but the personal allowance remained.

Could it be that we following Australia who I believe have some strict rules for any citizen that dares to leave their coastline?

Pardon my ignorance, but is the "state pension" to which you refer the same as what we call "social security"? Bit confusing as I have been drawing a USG pension since I retired at 51, but will not be eligible for full social security payments until January, when I turn 66.

Originally Posted by chassamui

Originally Posted by Rainfall

Whining liberal. A government big enough to give you everything you want, is also big enough to take away everything you have, didn't you know? Free people don't depend on the government.

I thought you would have been a supporter of the social welfare construct? Parity for all and that.

Well, yes, ok. However, first of all I'd like to see the morons who vote big-business friendly punished, since this is exactly what they voted for.

Originally Posted by Mr Lick

Could it be that we following Australia who I believe have some strict rules for any citizen that dares to leave their coastline?

Easy to rob people when they are not in the country. Of course many will say that they are if they bring this in and if they have a UK address, on the electoral roll, do not transfer monies into Thailand or where ever, do not use ATM's have nothing to do with the Embassy 'services' then it might get difficult to prove you are not in fact resident in the UK. They would have to use the UKBA to log everyone in and out and destinations too as the EU does not count, so you could always fly there then on. Fvck 'em I say, this is totally immoral and unjust, even if legal.

Originally Posted by chassamui

I got lucky and will only have to wait 6 months after my 65th birthday to claim mine.

You won't have much of it left if they tax three pensions at 20% with no allowance

Originally Posted by xanax

then it might get difficult to prove you are not in fact resident in the UK.

Easy as pie now we all have microchips in our passports.

Originally Posted by chassamui

Originally Posted by Davis Knowlton

Pardon my ignorance, but is the "state pension" to which you refer the same as what we call "social security"? Bit confusing as I have been drawing a USG pension since I retired at 51, but will not be eligible for full social security payments until January, when I turn 66.

When we Brittles refer to the state pension, it is the old age pension payable at 65 for men and 60 for women. It is paid for by national insurance contributions throughout your working life. As others have said, the government keeps moving the goalposts as it extends state retirement age in line with increased life expectancy. I got lucky and will only have to wait 6 months after my 65th birthday to claim mine.

Thanks. Basically the same as US Social Security, then. US Social Security payments are subject to Federal Tax, I believe, on a sliding scale, depending on if it is your sole income (in which case you're eating cat food), where it is generally tax-free; you pay higher levels of tax the higher your income - from all sources. Thus, both my USG pension, and a portion of my Social Security payment (once I start getting it) will be subject to Federal Tax. Income I make working abroad is tax-free, as long as I make less than $99, 200 per annum (for tax year 2014). Not any worry about exceeding that...........

Originally Posted by Mr Lick

If changes are implemented it would benefit myself if the state pension were taxed but the personal allowance remained.

That is exactly the current situation. The current proposal is to withdraw the personal allowance so that everyone has to pay an additional £ 2,000, or if you are really lucky, £ 4,000 because this would push many people into the 40% tax bracket.

Originally Posted by VocalNeal

I am not necessarily in favour of pensions being taxed but I do understand the economic aspect of the monies being removed from UK circulation. Maybe one could argue that if the money went into UK circulation then every bit spent would be subject to VAT so collect the VAT amount that would otherwise be lost.

People should have the right to spend their money where and on what they like surely? They have not paid into a system for 30-40 years thinking that they were going to be hoodwinked out of 20% of it at the last minute by a load of expense cheats in Westminster.

I have a UK based pension, have the full (10k) tax allowance. I still pay tax. The only practical way of the UK government removing the tax allowance, is to make the whole pension and/or income, tax free, and you are liable for tax in the country of residence.

The UK state pension is of course frozen from the initial receipt amount (at least for those in non-EU or other qualifying countries), so already there are many constraints on the benefits afforded to UK expat pensioners.

Originally Posted by xanax

Originally Posted by Thormaturge

Originally Posted by xanax

then it might get difficult to prove you are not in fact resident in the UK.

Easy as pie now we all have microchips in our passports.

They do not have a system yet or in the foreseeable to track us. Such a system would have to have worldwide co operation to close the door. What is to stop you going to an EU country where pensions are upgraded and you still will get the tax allowance, and then go on from there? UKBA would only have your outward info to Paris, Rome etc. From there it might be pretty hard to track you down, they could always ask the Thais of course, good luck with that one. They would know how many days you had been in the UK but not where.

They don't need to know where since the authorities can cease your benefits if they believe you are not entitled to them. That said, the UKBA and HMRC have powerful internet trawling software which tracks social media, ebay, email addresses posted innocently on the internet, expat forums etc. etc. Have you ever renewed your passport through the FCO? BINGO they know where you are. You need to live like a hermit to avoid this stuff. Then there are the informants' hotlines...look up Angela Walker for the most famous case.

You can't win.

Originally Posted by PAG

The only practical way of the UK government removing the tax allowance, is to make the whole pension and/or income, tax free, and you are liable for tax in the country of residence.

That won't happen since a common feature of tax treaties worldwide is that pensions paid from public funds are taxable in the country where they are paid from. It would require a re-write of thousands of reciprocal agreements worldwide and the cooperation of every government involved.

I do live like a hermit, no facebook and all emails are not in my name, no ebay etc. Is the pension a benefit or an entitlement? Good tip about the passport.
There's lots of results for Angela Walker which one the murderer?

^
Renewed your passport since you came here?

Got a Thai driving licence? Remember that letter from the Embassy?

Here's the Angela Walker story..

Overseas benefit cheats face new crackdown - Telegraph

Originally Posted by Thormaturge

I left the UK exactly on the 30 year mark knowing I would receive the full State pension at age 65. Subsequently the age was put back to 66.

When you left the UK your 'State Pension' was frozen. Once you now reach pension age you will only receive the frozen rate as it was when you left, so I understand. You get no annual increments.

Originally Posted by Pragmatic

Originally Posted by Thormaturge

I left the UK exactly on the 30 year mark knowing I would receive the full State pension at age 65. Subsequently the age was put back to 66.

When you left the UK your 'State Pension' was frozen. Once you now reach pension age you will only receive the frozen rate as it was when you left, so I understand. You get no annual increments.

Almost right.

The pension is frozen at the rate it was when you first received it. Thus whatever the pension in 2021, that is the rate I will receive forever, regardless of any increases in the UK...unless the rules change again. As if..

All this does is make my home country look cheap and disreputable in my mind.

Originally Posted by Pragmatic

When you left the UK your 'State Pension' was frozen. Once you now reach pension age you will only receive the frozen rate as it was when you left, so I understand. You get no annual increments.

It's the date you become eligible to receive it that decides the amount, not the rate when you left. If you are here when you qualify you will get the current rate, but frozen at the same rate unless you return permanently to UK.

Originally Posted by Thormaturge

The pension is frozen at the rate it was when you first received it. Thus whatever the pension in 2021, that is the rate I will receive forever, regardless of any increases in the UK...unless the rules change again. As if.. All this does is make my home country look cheap and disreputable in my mind.

I believe once you leave it's frozen and that is the figure you receive upon retirement.

^

Chassamui and I are right on this.

I make a living advising on these issues.

Please explain this then.

Anger is growing among hundreds of thousands of British pensioners living abroad who are being denied their full state pension simply because of the country they live in.


Many have contacted us in recent weeks to complain about being treated like second-class citizens, only because of where they’ve chosen to live abroad. The problem is believed to affect around 565,000 UK pensioners who have had their pension frozen at the rate it was when they left the UK.
The state pension is guaranteed to rise each year, giving pensioners a small increase every 12 months. Of the 12 million people who receive the state pension, 1.2 million live abroad. It is among the latter group that a huge inequality has developed.
Those who have retired to the EU or more than 20 other countries – including the United States and Mauritius – see their state pension increased each year. But anyone who has moved to countries such as Australia, Canada, South Africa and a 100 more places has their pension frozen at the rate it was paid when they leave the country.

Expats call for fairer pension payouts - Pensions - Money - The Independent

Originally Posted by Thormaturge

^
Renewed your passport since you came here?

Got a Thai driving licence? Remember that letter from the Embassy?

Here's the Angela Walker story..

Overseas benefit cheats face new crackdown - Telegraph

No to all the above, thanks for the link