If they do have this capability it's used selectively as you have to tell them when you're out of the country and you want to stop paying tax!
Lucky you, we still have to pay tax to the U.S. feds no matter where we live if we receive any money that originates in the U.S. (like my pension).
Even though I make less that one third of what I did when I was working, and don't use any U.S. services or infrastructure I have to pay a higher percentage of my income as tax now than I did when living and working there (because here I have no tax deductions, like mortgage interest or property tax, etc.). I can't even deduct the support of my mother in law (as a dependant) as she doesn't have a U.S. social security number!
As far as I know, there is no tax relief for an American receiving pension or any income from the U.S. no matter how long you reside outside the country...
Migrant, are there any loopholes I can use?
My brain is like an Internet browser; 12 tabs are open and 5 of them are not responding, there's a GIF playing in an endless loop,... and where is that annoying music coming from?
sargeant wrote:Secondly all pensions arising in the UK are taxed at source ie before they pay out one brass razoo in your direction
I may be wrong, but I was under the impression that, if you had declared yourself as "non-resident", then private pensions are paid tax free. No idea about teh state pension.
"Sometimes I sits and thinks, and then again I just sits" Punch 24th Oct 1906
I am afraid that is not correct condo
As i found out to my loss two years after coming here declaring as you said and being (incorrectly told by inland reveue) that i would never hear from them again
My BA pension is totaly private and i pay Tax (blood money) on it
I did get the first two years tax free but only because the ombudsman found they IR had provided incorrect information (luckily i had a good guy at IR Edinburgh who admitted he gave me incorrect info)
I do however still feel the unjustness of it because i based my retirement on paying NO TAX in large part and feel as they gave me that information i should NEVER pay TAX
hhfarang wrote:
As far as I know, there is no tax relief for an American receiving pension or any income from the U.S. no matter how long you reside outside the country...
Migrant, are there any loopholes I can use?
We must have a creative beer...oops I mean tax planning session when I get out there!!
sargeant wrote:Secondly all pensions arising in the UK are taxed at source ie before they pay out one brass razoo in your direction
I may be wrong, but I was under the impression that, if you had declared yourself as "non-resident", then private pensions are paid tax free. No idea about teh state pension.
I'm afraid that Sarge is right on this. The rules are the same as working abroad in that you pay income tax on any earnings derived in the UK, so if you have a UK pension you will be taxed.
The HMRC site tells you everything you need to know: http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm#3
Steve is right.
That's why i would recommend to everyone saving for private pensions to do this somewhere else but not in their home country. Whereever this may be.
A good argument for people who are self employed.
Its called 3 country system.
Living in the first, having a passport of the second and the money in the the third country.
Super Joe wrote: How many times has it shot up only to rollercoaster back down over the last year. Up about 15% from the low point at beginning of the year, but next week .....
PET wrote:
Many thanks for the UK Government web site re Tax on Pensions etc - it is informative and a simple read, which explains all the normal issues.
One thing I learnt from that site that was news to me was that you get an increased personal allowance if you're over 65:
sargeant wrote:Secondly all pensions arising in the UK are taxed at source ie before they pay out one brass razoo in your direction
I may be wrong, but I was under the impression that, if you had declared yourself as "non-resident", then private pensions are paid tax free. No idea about teh state pension.
I'm afraid that Sarge is right on this. The rules are the same as working abroad in that you pay income tax on any earnings derived in the UK, so if you have a UK pension you will be taxed.
The HMRC site tells you everything you need to know: http://www.hmrc.gov.uk/incometax/tax-leave-uk.htm#3
I should be grateful for the clarification, but such news was not what I wa looking for . Anyway many thanks, does anyone have the blueprints for plan B?
"Sometimes I sits and thinks, and then again I just sits" Punch 24th Oct 1906
STEVE G wrote:
One thing I learnt from that site that was news to me was that you get an increased personal allowance if you're over 65:
Yes, but it reduces if your income is over £22,900. I think for every £2 the higher allowance is reduced by £1. I'm pretty sure that means that if you earn £28930 you revert to the lower allowance
i reckon odds on they pass that info back to the vampires
. Anyway many thanks, does anyone have the blueprints for plan B?