How come our UK State Pensions are entirely wiped-out by Hacienda? - Page 2

alacant wrote on Thu Feb 16, 2023 8:28pm:

Thanks for the reply. I also declare yearly online.

The documentation concerning the number of sources of income declarable for pension purposes is explained here;

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https://www.boe.es/eli/es/res/2003/01/13/(1)

My main issue, as with @Gareth23, is the one of the reduction in allowance after which tax must be paid when the pension originates from more than one source 

I wonder if anyone has experience in dealing with this or could recommend a gestor versed in UK pensions who could clarify?

Cheers and thanks again.

Kimmy11 wrote on Thu Feb 16, 2023 8:29pm:

Hi Gareth,

Hopefully, you'll receive recommendations for tax consultants in your area, but for what it's worth, I use Abaco Advisers in Torrevieja, who also have an office in Alicante.

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https://www.abacoadvisers.com/taxes

Kind regards, 

Kim

Herefordjack wrote on Thu Feb 16, 2023 8:11pm:

All I can tell you is that I do my income tax return myself once a year online, direct with the Agencia Tributaria website. I have an electronic certificate on my computer which identifies me to the taxman. It's not too difficult to get one of these. The tax return process is one of filling out b...

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...oxes on an electronic form, most of which is feeding in your income numbers.

As I said before, the form only differentiates between (worldwide) income generated from work related sources, for a retired person that means pension or pensions, and income generated from investment sources, e.g. share dividends, interest on savings accounts, etc.

Nowhere does it ask me to break down my pension income or identify where it comes from. I might be wrong, but it sounds to me like your man is spinning you a line.

I can give you chapter and verse on what I do if you want. The thing about the Crown pension is a sidetrack and doesn't really affect what I've written above.

Geoffro wrote on Fri Feb 17, 2023 11:27am:

Would it pay to give up one pension?

Kimmy11 wrote on Sun Feb 19, 2023 7:49pm:

Hi Gareth,

I asked my tax advisor about receiving State pensions from 2 payers, and this is extracted from their response:

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"An individual can only ever receive 100% state pension from their responsible country, if they only contribute to social security in UK and EU countries. A person cannot receive any more than that, no matter how many additional years they pay in.

"So, if someone pays 25 years to UK, then 15 years to Spain, they would still only get the equivalent of 100% state pension not (for example) 25/37ths of a UK pension plus 15/37ths of a Spanish pension, i.e. they cannot receive 40/37ths of a state pension.

"(The number of years required to get 100% state pension depends on retirement age and required contributory years of the individual, therefore 37 is used only as an example.)

"The only way to get more than 100% combined state pension is if the person works beyond their retirement age in Spain and so can accrue more pension years."

This suggests to me that the idea offered by Geoffro, to claim only one State Pension, or mine to defer claiming, are worth investigating with a fiscal asesor.

Kind regards, 

Kim

Gareth23 wrote on Mon Feb 20, 2023 9:21am:

Thanks for your continued interest in my question but there is no mystery in the *source* of the pensions, nor the amount of pension paid, nor percentages of full pension, etc.   

My question was about tax: the way that Hacienda takes more tax for pensions paid by more than one p...

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...ayer.

Thanks.  I think this is probably a good moment to close the subject.

TonySmith wrote on Mon Feb 20, 2023 7:57pm:

Income Tax rates in Spain, work out your 1st income tax rate, then add your 2nd income and see the new tax rate. eg if your 1st is 20000 you pay 24% but if your second is 16000, bringing your total to 36000 THEN you pay 37%

https://myspainvisa.com/spanish-tax/  

alacant wrote on Mon Feb 20, 2023 8:34pm:

Mmm. Thanks, but unfortunately, pension tax percentages are not calculated in this manner.