I have been advised by my tax adviser that tax is now liable on my Army pension which has increased my tax payment by over €1200 this year. I this correct?.
No. Unless (an) other know's recent news. A "crown" pension ( although declared to ES authorities), under agreement is protected. V
Villas wrote on Thu Jun 23, 2022 11:42am:
No. Unless (an) other know's recent news. A "crown" pension ( although declared to ES authorities), under agreement is protected. V
I believe some military disability pensions may be exempt but if it's just a regular pension not.
Darro wrote on Thu Jun 23, 2022 11:51am:
I believe some military disability pensions may be exempt but if it's just a regular pension not.
Darro thanks, but the answer is "no" , disabilities not considered. Search on certain, "UK government" "crown pensions ". Or provide a link. I am out until later & will provide link ( unless someone can clarify first. V
david36 wrote on Thu Jun 23, 2022 11:27am:
I have been advised by my tax adviser that tax is now liable on my Army pension which has increased my tax payment by over €1200 this year. I this correct?.
Is it possible that increases to your army pension have pushed you into a higher band of Spanish tax?
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PeterPan wrote on Thu Jun 23, 2022 12:39pm:
Is it possible that increases to your army pension have pushed you into a higher band of Spanish tax?
Double taxation
The UK and Spain have had a Double Taxation Convention for some time. Rules covering income tax and other taxes came into effect on January 1 and April 6, 2015.
UK Government service pensions paid to retired members of the fire service, police, civil servants, armed forces and local authorities are exempt from Spanish tax. Under the new treaty the amount of the pension is still exempt but must be included when calculating how much tax is due in Spain. This could have the effect of pushing any other income – perhaps from investments and rent – into a higher tax bracket meaning you’d have to pay more tax in Spain.
EDIT:
https://www.spenceclarke.com/articles/when-a-pension-is-not-a-pension/
V
Posted: Thu Jun 23, 2022 1:49pm
Legendary helpful member
There’s a list a available of exactly which pensions are covered I’ll see if I can find it again.
I checked a couple of days ago, because I receive a crown pension , but it’s not covered under the agreement.
Lynn
Posted: Thu Jun 23, 2022 2:01pm
Legendary helpful member
Found the list of which pensions are covered see , link below
https://www.gov.uk/hmrc-internal-manuals/international-manual/intm343040
Lynn
Villas wrote on Thu Jun 23, 2022 12:10pm:
Darro thanks, but the answer is "no" , disabilities not considered. Search on certain, "UK government" "crown pensions ". Or provide a link. I am out until later & will provide link ( unless someone can clarify first. V
It was a while ago I read about it but possible it applied to Spainish military pensions.
The OP wrote "I have been advised by my tax adviser that tax is now liable on my Army pension" which clearly implies that something has changed since the last tax return so assuming it's the same adviser what has he/she got to say about it?
Posted: Thu Jun 23, 2022 11:23pm
Helpful member
David 36 your military pension is safe from tax as it is taxed at source, If you earn anything in Spain then it will be taxed as most military pensions make you over the Spanish tax threshold.
Are you sure your tax advisor knows what he is doing?