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My uk private pensions are non taxable in UK as tax was paid at source only my government pension is taxable. Here in spain they want to tax me on government and private pensions . have my uk tax forms that say my private pensions are not taxable and I have the tax codes for them as well can the spanish government still tax me on these
Posted: Thu Mar 17, 2022 2:24pm
Helpful member
Yes...
Derek52 wrote on Thu Mar 17, 2022 2:13pm:
My uk private pensions are non taxable in UK as tax was paid at source only my government pension is taxable. Here in spain they want to tax me on government and private pensions . have my uk tax forms that say my private pensions are not taxable and I have the tax codes for the...
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...m as well can the spanish government still tax me on these
The Spanish tax man will tax you on all income.
I have 3 private pensions and the UK government pension which are all taxed here in Spain. I had some tax free government bonds and ISA's that were not worth keeping when I moved to Spain as the income was taxable so I sold them off.
You must declare all worldwide income above 50k on the modelo 720 form.
Steve
Posted: Thu Mar 17, 2022 2:47pm
Helpful member
Steve
I believe you have erred! The 720 form surely calls for capital value, not income, and does not of itself raise any tax, but is merely an aide memoir for Hacienda when dealing with the normal tax return in May/June annually.
Also readers should be aware of the danger of calling the state pension a Government pension, as it confuses the recipients of Civil Service and similar pensions which remain taxable only in UK.
Marcbernard wrote on Thu Mar 17, 2022 2:47pm:
Steve
I believe you have erred! The 720 form surely calls for capital value, not income, and does not of itself raise any tax, but is merely an aide memoir for Hacienda when dealing with the normal tax return in May/June annually.
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Also readers should be aware of the danger of calling the state pension a Government pension, as it confuses the recipients of Civil Service and similar pensions which remain taxable only in UK.
Yes the modelo 720 will ask for capital value above 50k (and many other details) of all worldwide income and value of property etc.
We have been told and "led to believe" that the modelo 720 is not used for taxation purposes but you have to make up your own mind about that. I know what I think...
Steve
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tebo53 wrote on Thu Mar 17, 2022 2:58pm:
Yes the modelo 720 will ask for capital value above 50k (and many other details) of all worldwide income and value of property etc.
We have been told and "led to believe" that the modelo 720 is not used for taxation purposes but you have to make up your own mind about that. I know what I think...
Read more...
Steve
The 720 is a declaration of foreign assets and is nothing to do with income from them or the potential taxation thereof.
This is not the first time - or place - where you have posted misleading info on the subject!
Darro wrote on Thu Mar 17, 2022 7:11pm:
The 720 is a declaration of foreign assets and is nothing to do with income from them or the potential taxation thereof.
This is not the first time - or place - where you have posted misleading info on the subject!
No need for that Darro !! It's not been misleading information. I've always stated that all worldwide assets above 50k must be declared including pension funds, property and any other assets.
My personal opinion is that the authorities compare the modelo 720 with annual tax returns.
So Darro, What is misleading with any of this posting?
Steve
Posted: Sat Mar 19, 2022 12:31am
Legendary helpful member
Hi Derek and welcome to the forum,
When you refer to your "UK private pensions", are these company pensions or self-invested private pensions (SIPPs)? When you say "government pension", do you mean the UK State retirement pension, or a Crown pension, e.g. military, civil, service, (some) teachers, or NHS pension? If you can be more specific, we can give you an accurate answer.
Kind regards,
Kim
Kimmy11 wrote on Sat Mar 19, 2022 12:31am:
Hi Derek and welcome to the forum,
When you refer to your "UK private pensions", are these company pensions or self-invested private pensions (SIPPs)? When you say "government pension", do you mean the UK State retirement pension, or a Crown pension, e.g. military, civil, service, (some) teachers, or NHS pension? If yo...
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...u can be more specific, we can give you an accurate answer.
Kind regards,
Kim
Hi Kim my private pensions I took out in 1974 they were garenteed annuity pensions they stopped selling them after a few years because they realised people were living longer but I paid tax at source and receive all of them tax free with tax codes from the tax office my state pension is taxable but I don't pay any tax in UK as below the threshold
Derek
Posted: Sat Mar 19, 2022 5:19pm
Legendary helpful member
Hi Derek,
Depending on your age, you will probably have to pay tax on your UK State Retirement pension in Spain, but you need to take specialist advice on your annuities. The Dual Taxation Agreement between the UK and Spain should ensure that you don't pay tax on the same income in both countries, but there are exceptions. Don't use a gestor for this advice, you need a tax specialist, an "Asesor Fiscal". Had you been in Costa Blanca South, I would have recommended Abaco Advisers. Hopefully, other members in your area can recommend a tax specialist in the North.
Kind regards,
Kim
