Income tax on expat military pensions

Discussion in 'Finance, Property, Law' started by fingers_1661, Mar 10, 2008.

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  1. Superceded
  2. Has anyone ever heard of a situation whereby somebody who was in receipt of a mil pension, was non uk resident for tax purposes managed to avoid being taxed at source?

    Very interested in this.
  3. Having been handed a tax bill for the usa (having paid through paye) I looked into this. If you are not domiciled in the UK then you need to contact the HMRC office and get a non resident decision. You can then get the tax back. However HRMC will rass you up to the resident country and you will pay tax there. Check the tax rate before doing this. You may well be worse of.
  4. Pliss? I thinking 10 second,maybe 12! :roll:
  5. Blocksweat - Cheers for the advice I'll look into that. Whether I pay tax or not on my pension will affect whether I commute or not.
  6. Hi

    I live in Denark which has the highest tax in the world!

    Now for me, my 22 yr pension is taxed in the UK, despite me not living there and getting nothing back from the UK, HOWEVER, due to the double taxation agreement this salary can only be taxed once and the tax I pay in UK is tiny compared to if the Danes taxed me, which in my case is nearly 45% (this is the equivelent of our higher rate)

    So yes I do begrudge paying UK tax it does work in my favour.
  7. blue-sophist

    blue-sophist LE Good Egg (charities)

    I had been given to understand that if you declared "non-domiciled" status to HMRC, then the pension was no longer protected against inflation [i.e. no further pension increments]. That seemed sort of logical, on the basis that an inflation adjustment relating to a country you don't live in would be inappropriate.

    Anybody know the answer?
  8. You're confusing Military pensions with state pensions.
  9. blue-sophist

    blue-sophist LE Good Egg (charities)

    So which continues to be proof against [UK] inflation?

    Military or State?
  10. I have several expat friends in Cyprus. They have a double taxation agreement with the UK, 185 days after arriving there you fill out a Form X at the local tax office and send it off to Newcastle. You then stop paying UK tax on your pension and the Cypriots take 5% of it.

    I'm off.

    Edited to add:

    When someone buys My House
  11. Military, IIRC
  12. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours


    It is only the state pension which does not get the annual inflation uplift.

    Have a read of this:
  13. Only slightly off topic. Am I right in saying that pension payments are currently taxed at 22%? If so is this going to be reduced to 20% on Apr 6 08 when the base rate changes?

    Anyone know ?
  14. blue-sophist

    blue-sophist LE Good Egg (charities)

    Thanks for the reading material, OB.
    I'll be back in a week or so!! :lol:
  15. oldbaldy

    oldbaldy LE Moderator Good Egg (charities)
    1. Battlefield Tours

    Well sort of!

    The 10% rate is going & the 22% goes down to 20%.
    So whether you win or lose depends on your personal circumstances.