Pensions

[jackstee]

If your not a brit resident you may be void of tax or under the limit with your pension. In that case UK will not tax U.

Steve

[Ian]

So if I take out residency - live in Turkey half the year and the UK half the year - can I still have my private pension paid into my Turkish bank account - even if I have other income - house rental / state pension going into my UK Bank account?

If that is the case I can retire 6 months sooner !!!!

[Chinook]

Ian. No because you would not qualify to be a UK non resident. This may help

http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm#1

[Ian]

Chinook - many thanks for this - very helpful.

If I read this right - I could stay in Turkey for 6 and a half months and UK for 5 and a half months but not qualify if I still have a small house rental income in UK - ah well - never mind

Ian

[Ovacikpeedoff]

Ian, the definition of residency for tax purposes is very complicated. You could live outside the UK for 365 days and be classified as still resident in the country. I would say the fact that you have a property in the UK that you intend living in for nearly half a year would certainly raise questions with the taxman. A friend who is a tax advisor said that the revenue would treat as being resident in the Uk and subject to UK income tax. If you were going to do this I would see a tax specialist and clear it with the local inspector of taxes. The Inland Revenue are very hot on tax evasion....

Under the rules you would not be treated as a non resident because staying nearly six months would breach the condition that your visits to the UK exceed an average of 91 days over a four year period,

[Julesp]

If you apply for double taxation You have to declare you are not living in the UK for more than 3 months of the year
With evidence of visa stamps etc to back it up

[Julesp]

quote:Originally posted by Julesp

If you apply for double taxation You have to declare you are not living in the UK for more than 3 months of the year
With evidence of visa stamps etc to back it up

It also has its drawbacks because you have stated to Uk tax authority that you are not living in the uk so no chance of nipping back for NHS or opening bank accounts in Uk. National Lottery etc etc

[Ian]

Think I will stick with Plan A  

[joan]

We have had residency here in Turkey for 4 years now.My husband has continued paying tax in the UK on his small private penion.He has applied to the tax office for NT coding (no tax coding)due to the fact he is resident in Turkey and a potential tax payer here in Turkey.The tax office have informed him he can not be NT tax coded due to the fact his small pension is a Local Goverment Pension had it have been a private sector pension he would have been exempt from paying tax back in the UK.It seems so unfair that we have to pay tax in the UK for the rest of our lives even though we dont reside there, he paid into that scheme just the same as the person in the private sector.Pensions dont come free we all have to pay into them. Just wondered has anyone else had this problem when claiming tax back.Thanks

[screamlead]

Thats quite good for the state pension not getting taxed here and paid in gross. I can confirm however i have a "forces" pension and can confirm the following, 1. The only way to have it tax free is to have lived in Turkey for over 5 years and you have to have the Turkish Kimlik card which you can only get after having 5 years worth of residency permits, and you cant back claim any tax paid. 2. The UK Forces pension payments system is run by Citibank and will not pay any pensions into a Turkish Bank account, they will pay into an American, Canadian and any European Bank Account.