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Posted Thu, 29 Aug 2024 13:47:44 GMT by Stephen Lewis
I have been living & working in Spain for 9 years. I am considering taking my Teachers Pension at 55 (instead of 60 - I am 55 in May 2025) to supplement low income here (approx €11,000 presently). According to my pension statement, the pension will be approx £9,900pa. I've read that this will be taxed in the UK. If this is so, at what rate will it be taxed? And, the tax-free lump sum will also be subject to UK tax (i.e. not taxed)?
Posted Mon, 09 Sep 2024 13:23:32 GMT by Stephen Lewis
Any ideas anyone????
Posted Wed, 11 Sep 2024 06:26:46 GMT by HMRC Admin 25
Hi Stephen,
The tax treaty between the UK and Spain:
2014 UK-Spain Double Taxation Convention
Allows for UK government teacher's pensions to be taxable only in the UK.
INTM343040 - DT claims and applications - Types of income: Pensions and Annuities
As a UK national, you are entitled to claim personal allowance no matter where in the world you live.
Where the personal allowance exceeds your pension income, then no tax is payble.
Income tax rated in the UK are 20%, 40% and 45%.
Thank you. 
Posted Thu, 12 Sep 2024 11:17:19 GMT by Stephen Lewis
Thank you. Is there a form that I must send to HMRC to ensure that I am not taxed due to this income being below the personal allowance?

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