Tax on Pensions

[Rimms]

I'm sure this has been covered before but been unable to find the answer I require. What is the taxable position if you have your pension payments made directly into your bank in Turkey. I understand that my provider will initially make a net payment after tax has been applied but was wondering whether it is possible and more beneficial to ask them to make a gross payment and then handle any tax liability in Turkey.

[Ovacikpeedoff]

Go to the Customs and Revenue site and that will tell you what to do. You need to download a form fill it in and return it to the revenue in the UK. The form needs to be signed bu the Maliye in Fethiye. Someone said that they used Asli, the translator behind the post offfice, to do the necesssary with the Maliye office. The pension should then be paid gross when the Inland Revenue inform the pension provider.It could take a couple of months to put in place.

yes you are right, this is a topic that has been covered in detail in the past. Put tax on pensions in the search facility and it will come up as pensions posted by honestjoe

[Rimms]

Yes I read the post but was still less than clear on a couple of points:

Are private pensions paid at a gross level and tax free in Turkey and if so, what is the process you need to follow with the tax authorities  both here and in Turkey.

[Ovacikpeedoff]

Pensions are paid from the UK. Under a DTA between Turkey and the UK pensions can be paid gross. The tax deduction is made in the UK becaudse pensions are taxable income and has nothing to do with where it is paid.I assume you are resident in Tirkey and you can claim tax relief from the UK and get the pension payment paid gross. Just follow the process I outlined above and it will be paid gross.

If the pension is from a government job then tax will be deducted in the UK whether you are resident there or not. It is one of those weird exceptions.

[maximumtom]

An exception that nobody mentions when they are complaining how much better off people with public pensions are over people with private pensions.

[stoop]

quote:Originally posted by maximumtom

An exception that nobody mentions when they are complaining how much better off people with public pensions are over people with private pensions.

Maybe because it's not common knowledge unless you live abroad and those are a minority anyway.

[screamlead]

I was told by the UK tax office that i could not claim my tax back on my military pension unless i had the proper kimlik card and had been resident in Turkey for over 5 years!!!

[stoop]

So that's a public pension isn't it? I thought they were exempt from  being able to receive payments gross?

[screamlead]

I think it is classed as a Public Pension Stoop? but had no idea it cant be paid gross no idea why as we dont have anything in UK any longer. There is a way round it if i was to get it converted to a medical pension then its tax free for life - but an absolute nause to do it.

[stoop]

A military pension IS a public pension. Please go back and read the previous posts.