Double Taxation

[milliemars]

Information please,my husband has a private pension,we have been living here for 4 years,someone has told him that he does not have to pay tax in UK.Is this correct and how would he go about applying for it.Any information would be welcome.

[screamlead]

I am the same and have tried on numerous occasions to get my tax back or make it exempt. The answer from UK tax office is they wouldnt consider it unless i have lived here over 5 years and have the proper turkish kimlik card. Been here almost 8 years and still not managed it !

[Eric]

Contact C-E, they did it.  Its a long paper trail both in the UK and here from what I can remember.

[milliemars]

This may be stupid,but who is C-E ??

[Eric]

They are members of this forum, that is their user name, just like yours is milliemars.  Do a search of members and then send them a message.

[Diverbaz 1]

The paperwork is not that hard, the main sticking point is that you have to find someone in the turkish tax office prepared to sign and apply the official stamp.
Form DT/Individual online from the site below,

http://www.hmrc.gov.uk/cnr/dtindividual.pdf

and the notes,

http://www.hmrc.gov.uk/worksheets/sa109-notes.pdf

If you are eligible the tax is backdated up to 5 years (proof of residence required), I was sent this information recently when dealing with the tax man on another issue, they told me one of my pensions could be tax free and the form I needed to fill in. Nothing about being resident for 5 years came into it.

[fletch]

By double taxation I guess you mean BN66? I'm not sure whether this would apply on a private pension as it is more aimed at people working in a country that is a member of the double taxation treaty along with the UK. You will find that contractor's tend to use this to minimise their tax liability to the UK. There are also ways of working in the UK and using a similar route to minimise your tax due to HMRC, this is mainly used by IT contractor's earning 50k plus per annum.

My advice would be to approach your pension provider and ask them for some expert guidance as again I assume they deduct the tax element of your pension before releasing the nett amount to yourself.

Have a look on the HMRC website or give them a call and I'm sure they will put you right. Personally I think that because the money is paid to you from the UK it will be taxed to HMRC guidelines but I hope I am wrong.  

Good luck with it.  

[Ovacikpeedoff]

If you are on a pension from the civil service or the government it will still be subject to UK tax. Ifyou have anyother private pension you have the right to elect under the double taxation relief agreement between Turkey and the UK to have your income taxed under Turkish tax law. Currently, pensions in Turkey are exempt from income tax.

You need to get the necessary forms from the Inland Revenue. I believe they are available online but cannot be completed online. You need to print them off andd fill them in. I would also get someone to write a letter in Turkish and take it to the tax office in fethiye. They will probably sign it for you. Send a copy of the letter with an English translation and the IR application forms and that should be all that is required. When I lived in Turkey that is what I did for a friend and he got the relief.

Baz has put a link to the form you require. If you have residency take that to the tax office and send a copy to the IR in the UK.

The IR dealt with it quickly.

[SteveJ]

quote:

There are also ways of working in the UK and using a similar route to minimise your tax due to HMRC, this is mainly used by IT contractor's earning 50k plus per annum.

Fletch - that particular loophole was closed by the IR35 legislation about two years ago.

[Julesp]

I did this with my private widows pension, the forms are available online as in previous post and are quite simple to fill in

For the turkish side of things I took the forms to the translator lady behind Fethiye PTT and she did the translation got the tax forms and all the Turkish side of things done for me,she has done many before she told me.
 incidentally they will only sign you as being resident for tax purposes from the date that your residency visa started, so if you have been here on a tourist visa you may not be able to claim rebate for before that date

I then returned the forms to the address in the Uk by Cargo so that it could be tracked, all the turks use this for sending important things by post, the Post office is not too reliable

It took about 5 months for them to process in the Uk