Pension Tax confusion

seven-day-weekend

Tax Office says that it is up to the Individual Bank whether I can receive my interest gross or not.

krisskross

You have to ask the bank for the form to fill out, think it is R52, but don't take that as gospel:rotfl: Although you are resident in Spain you have property etc in England and have chosen to pay your income tax here. If you could be bothered with all the hassle involved the Spanish have much more lavish tax free allowances and you would almost certainly pay no tax there. Britain has the dual tax agreement thingy with Spain.As you have property and bank accounts in England i am sure you would meet the habitual residence criteria and thus be able to pay no tax on investment.

seven-day-weekend

My husband has to pay tax in the Uk on his Teacher's Pension as Government Pensions do not come under the same rules. He could register to pay tax on his IB in Spain but as yet has not done so.

seven-day-weekend

krisskross wrote:

.As you have property and bank accounts in England i am sure you would meet the habitual residence criteria and thus be able to pay no tax on investment.

Wehave Spanish Residency cards and therefore are Spanish Residents. You have to apply for Residency if you are going to be in Spain for longer than six months (at least this was the rule in 2004).

krisskross

Yes we took out Spanish Residency while we were there as it made some things easier.We still opted to pay UK income tax though. Your bank will not be aware of any of the Residency issues will they?. Not that I am suggesting you do anything that is cheating but I was under the impression that we decided for ourselves where we paid tax so would see no issue with you not paying tax on investment in the UK as you have no other income to set against personal allowance.. Now if you personally had investments in Spain then yes I would expect you to pay tax there.