Skip to main content

This is a new service – your feedback will help us to improve it.

  • RE: Moving abroad - taxation of UK Pensions and disposal of assets

    Hello again and many thanks for your advice which we found very helpful. Just to clarify that we have understood correctly and how the above would work in practice : (1) new UK tax code notice (on move to join family in Germany) a) new tax code will be calculated for UK income to include my Teachers Pension and Civ Service Pension (after full Personal Allowance). b) UK State Pension income will no longer be included (and UK tax exempt) c) TPA and CSP will automatically be informed of new (reduced) rate of tax due - without the need for me to submit future annual tax returns to HMRC. (3) I can still benefit from transfer of Marriage Allowance from my wife - even if she no longer has a tax liability in UK? (4) Annual Tax Return we would however still be required to submit annual tax returns if we continue to receive UK savings interest/share dividends/capital gains (even if within the approved exemption limits) - as per the criteria in the link you sent above -but this income would no longer be liable to UK income tax? Many thanks in anticipation
  • Moving abroad - taxation of UK Pensions and disposal of assets

    My wife and I are both pensioners currently resident in Scotland (and taxed under the Scottish system). We are considering moving abroad to join family in Europe and becoming permanently resident there. We would be grateful for information on the impact on our tax situation especially from anyone with recent experience: 1 I receive a UK Teachers Pension (TP), a Civil Service Pension (CSP) as well as a State Pension; my wife receives a State Pension. I understand that under Double Taxation Agreements the TP and CSP (both classified as government pensions) must/will continue to be taxed in UK (and not abroad) whilst our State Pensions will be liable to tax abroad but no longer have to be declared in UK. Is this correct ? 2 If this is the case will I retain my UK Personal Allowance (PA) to offset against my TP and CSP? 3 Under the Marriage Allowance Transfer arrangement I currently receive part of my wife's PA in addition to my own PA. Will this still still be available to me, even if my wife is no longer liable to UK tax as a non-resident? 4 We are currently taxed under the Scottish Income Tax arrangements for residents of Scotland. Will my TP and CSP be taxed under the English or continue in the Scottish regime once I become resident abroad? Will we be required to complete annual UK tax returns and, if so, to which tax office ? Will I be required to inform the TPA and CSP agencies of the changes or will HMRC duly inform them? 5 We currently own our own house (where we have lived for over 20 years). Will we be liable to UK Capital Gains Tax if we sell this (a) before we move abroad and (b) within the first year (or longer) of moving abroad? 6 Will interest on UK bank accounts become liable to UK income tax and will we retain our Personal Savings Allowances (£1000) each ? Will share dividends and disposal of shares continue to be liable to UK Income Tax (Share Dividend Allowance) and UK CGT? Many thanks in anticipation