uk tax nonresident status pros and cons

auriga


Joined: 26/08/2010
Posts: 35

Message Posted:
14/10/2010 10:56

any advise please. i am considering become a uk non tax resident.i have lived here over 6 years and return to the uk once a year for about 3 weeks. I do not have a uk address.My private pension in uk is taxed at source. As a uk non tax resident i can claim back prior year taxes paid (confirmed by HMRC). Will this impact my state pension when i qualify in a couple of years? any comments on advantages / disadvantages or experiences of the above situation. many thanks

sunnyday


Joined: 14/03/2008
Posts: 269

Message Posted:
14/10/2010 11:02

You are non resident in the UK for tax purposes. Its not a matter of choice, its how long you spend in the UK each year.



As a non resident you are still liable to UK tax on your UK income, although you are still entitled to your UK personal allowance. So if your tax code used for your private pension includes your personal allowance, there is unlikely to be any refund due. You will also be liable to tax on your state pension.

briggus


Joined: 25/07/2007
Posts: 161

Message Posted:
14/10/2010 11:25

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/LeavingOrComingIntoTheUK/DG_078445



May help

nostradamus


Joined: 15/04/2008
Posts: 557

Message Posted:
14/10/2010 13:12

You cannot, when living in the TRNC, claim for any UK pension to be paid without deduction of tax. Reason: there is no double taxation treaty between UK and TRNC for the obvious reason that the TRNC is not a recognised country. If you speak to a UK tax office on this subject, they are a dead loss. In my experience, they frequently give incorrect information and you simply cannot speak to anybody with adequate knowledge. If, however, you waste your time submitting the appropriate paperwork, they will miraculously know immediately that you cannot make a claim!

proger1



Joined: 18/04/2009
Posts: 2919

Message Posted:
14/10/2010 19:25

auriga, if you have all ready confirmed that with HMRC that you are entitled to get the paid tax back, why are you asking on here about the pension system ?

As far as I have been made aware after being non resident for nearly 10 years now, I am entitled to a small pension from the military but have to pay tax for, if memory serves me correctly, 35 years to be entitled to state pension which at the moment have no intention of doing.

My belief is that at 62 years old and my assumption that you have been paying taxes since 16 you would still qualify even after claiming back the last 6 years however my advice would be to get a professional to look into it, you would be really p*ssed if it all went wrong and we have enough people in NC that it has happened too.