Police pension living in spain

Hi, I’m about to receive a deferred U.K. police pension while living in Spain. I understand the double taxation treaty means the pension will be taxed under U.K. rules and will not be taxed in Spain, but what about the commutation I can receive. It’s approx £100,000. Is this subject to the same rules where it would be classed as tax exempt under U.K. rules, or will it be taxed in Spain?

Anyone?

Hi Jasonh9288,
Police pensions are classed as government pensions and remain taxable in the UK.
To be exempt you would need to be a national and a resident of Spain.
Thank you. 

 

Hi, Yes I’m resident in Spain and aware of the double taxation agreement. I’m also aware that in that agreement police pensions are not taxed in Spain. My question wasn’t really about the pension ( ie, the paid monthly amount) but the commutation. With a police pension I’m able to commute up to,25% of the pension for a one of lump sum payment. This will amount to approx £100k which I know is not taxed in the U.K. my question is, as a Spanish resident, under the double taxation agreement, is it still classed as part of the police pension and therefore subject to,U.K. taxation rules, and therefore not taxable in Spain?

Hi Jasonh9288

Yes this is still part of your Police pension. This is a government pension and remains liable in the UK unless you are a national and a resident of Spain.

Thank you