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U.K. tax on Private Pensions

Posted: Mon Jul 24, 2023 9:03pm
26 replies899 views8 members subscribed
Wizzy2

Posts: 178

35 helpful points

Joined: 5 Mar 2020

Has anyone had issues when claiming a private pension from U.K. and being taxed in U.K. 

I was advised to ask HMRC for an  NT (No Tax code) in order to pay tax only in Spain on pension payments. After filling out the appropriate forms 3 times online the only correspondence received from HMRC was a letter stating no refund due. Nothing about a code. 

Just in process of making first claim to be told by pensions company that tax will be deducted in U.K. on emergency code and can apply for refund. How on earth can HMRC ignore official forms they ask you to fill out especially as we are tax residents here in Spain

Any advice gratefully received

marcliff

Posted: Mon Jul 24, 2023 9:15pm

marcliff

Legendary helpful member

Posts: 1699

2060 helpful points

Location: Rojales

Joined: 5 Jan 2023

Posted: Mon Jul 24, 2023 9:15pm

You need to complete a Form Spain - Individual (was called the FD9) which is here 

http://www.hmrc.gov.uk/gds/paye/attachments/81015_spain_indiv.pdf
You will pay tax in both UK and Spain until it has been finalised but the UK HMRC should refund the taxes you paid in UK.Don't hold your breath, though. HMRC is very slow at the moment. I contacted them by phone and they said they would only accept forms by mail but I think working from home means they don't check the mail. They told me they would reply in 28 days but it took 10 months to even acknowledge my letter. Then another 6 months to come back to me with yet another form to fill in.Still waiting since I sent that off in January this year.Private pensions, which are not government/crown pensions are only taxable in Spain under the dual tax agreement. Same with the state pension.

You will also need a letter from the Spanish tax authorities stating you are a tax resident in Spain which must accompany that FD9. I got mine by signing up with a clave from the Spanish tax site which then send you a letter with a code to enter in their website and you can download the form from there.

Wizzy2

Posted: Mon Jul 24, 2023 11:33pm

Wizzy2

Original Poster

Posts: 178

35 helpful points

Joined: 5 Mar 2020

Posted: Mon Jul 24, 2023 11:33pm

marcliff wrote on Mon Jul 24, 2023 9:15pm:

You need to complete a Form Spain - Individual (was called the FD9) which is here 

http://www.hmrc.gov.uk/gds/paye/attachments/81015_spain_indiv.pdf
You will pay tax in both UK and Spain until it has been finalised but the UK HMRC should refund the taxes you paid in...

... UK.Don't hold your breath, though. HMRC is very slow at the moment. I contacted them by phone and they said they would only accept forms by mail but I think working from home means they don't check the mail. They told me they would reply in 28 days but it took 10 months to even acknowledge my letter. Then another 6 months to come back to me with yet another form to fill in.Still waiting since I sent that off in January this year.Private pensions, which are not government/crown pensions are only taxable in Spain under the dual tax agreement. Same with the state pension.

You will also need a letter from the Spanish tax authorities stating you are a tax resident in Spain which must accompany that FD9. I got mine by signing up with a clave from the Spanish tax site which then send you a letter with a code to enter in their website and you can download the form from there.

Thank you Marcliff that was very helpful. I know that HMRC are not good now as I originally sent the first form a year ago and received the letter in March this year. 
do you have a link to the Spanish tax website please, I’m afraid I only have basic Spanish although trying hard to learn it 

marcliff

Posted: Tue Jul 25, 2023 12:07am

marcliff

Legendary helpful member

Posts: 1699

2060 helpful points

Location: Rojales

Joined: 5 Jan 2023

Posted: Tue Jul 25, 2023 12:07am

Wizzy2 wrote on Mon Jul 24, 2023 11:33pm:

Thank you Marcliff that was very helpful. I know that HMRC are not good now as I originally sent the first form a year ago and received the letter in March this year. 
do you have a link to the Spanish tax website please, I’m afraid I only have basic Spanish although trying hard to lear...

...n it 

Yes, it's on here.

https://sede.agenciatributaria.gob.es/Sede/en_gb/procedimientoini/G305.shtml

I registered and they sent me a letter by post with a long code. Then you go back to this site and enter the code and they send you a SMS message with another PIN number. You can then download the fiscal resident code.

Wizzy2

Posted: Tue Jul 25, 2023 7:27am

Wizzy2

Original Poster

Posts: 178

35 helpful points

Joined: 5 Mar 2020

Posted: Tue Jul 25, 2023 7:27am

marcliff wrote on Tue Jul 25, 2023 12:07am:

Yes, it's on here.

https://sede.agenciatributaria.gob.es/Sede/en_gb/procedimientoini/G305.shtml

I registered and they sent me a letter by post with a long code. Then you go back to this site and enter the code and they send you a SMS message with another PIN number. You can then download the fiscal resident code.

Thank you very much for your assistance 

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tebo53

Posted: Tue Jul 25, 2023 9:11am

tebo53

Legendary helpful member

Posts: 4829

5026 helpful points

Location: Benidorm

Joined: 29 May 2018

Posted: Tue Jul 25, 2023 9:11am

A couple of years ago when I applied for and received my rebate from HMRC they sent it to me in Spain as a cheque!!

It cost a lot of money to have the cheque processed at my bank and they asked me to prove where it had come from.......

As of now I still don't think they pay rebates by bank transfer.

Steve 

Wizzy2

Posted: Tue Jul 25, 2023 10:15am

Wizzy2

Original Poster

Posts: 178

35 helpful points

Joined: 5 Mar 2020

Posted: Tue Jul 25, 2023 10:15am

tebo53 wrote on Tue Jul 25, 2023 9:11am:

A couple of years ago when I applied for and received my rebate from HMRC they sent it to me in Spain as a cheque!!

It cost a lot of money to have the cheque processed at my bank and they asked me to prove where it had come from.......

As of now I still don't think they pay rebates by bank transfer.

Steve 

Crikey it does seem that while it’s cheaper to live over here every opportunity is taken to get a share of our pensions 

Darro

Posted: Tue Jul 25, 2023 11:22am

Darro

Super helpful member

Posts: 1491

1305 helpful points

Location: Catral

Joined: 8 Sep 2021

Posted: Tue Jul 25, 2023 11:22am

Got annual tax refund cheque from HMRC just last week, using the Lloyds app was able to scan it in and the money was in my account within 24 hours.

I'd be surprised if other UK banks didn't have similar in their apps so maybe not looking hard enough?

Alternatively send them to me and I'll scan them in and transfer the proceeds for a modest fee.

Wizzy2

Posted: Tue Jul 25, 2023 11:31am

Wizzy2

Original Poster

Posts: 178

35 helpful points

Joined: 5 Mar 2020

Posted: Tue Jul 25, 2023 11:31am

Just found that I can pay a cheque on my banking app too 

tebo53

Posted: Tue Jul 25, 2023 12:27pm

tebo53

Legendary helpful member

Posts: 4829

5026 helpful points

Location: Benidorm

Joined: 29 May 2018

Posted: Tue Jul 25, 2023 12:27pm

Darro wrote on Tue Jul 25, 2023 11:22am:

Got annual tax refund cheque from HMRC just last week, using the Lloyds app was able to scan it in and the money was in my account within 24 hours.

I'd be surprised if other UK banks didn't have similar in their apps so maybe not looking hard enough?

Alternatively send them to me and I'll scan them in and transfer the proceeds for a modest fee.

I don't think you can scan UK cheques, or any  cheques with my Sabadell app..

Steve 

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