UK employment pension, but living abroad

TBC15

Just got off the phone with HMRC, as I would not be subject to tax on my pension in Oman I would be subject to UK tax.

Pete_Waggott

This is my first post here so apologies if my query is not entirely relevant. I am considering retirement (I'm 61) and have lived and worked in Jersey since 1989. However, prior to moving here I was a teacher in Newcastle from 1978 - 1989, and paid into the Teacher's Pension Scheme. I presume that I can access any lump sum/pension (however small) but have so far drawn a blank with teacherspensions.co.uk as for some reason I cannot create an account there to check my status, and they seem unable to answer the phone. Any offers of help/advice would be greatly appreciated. Thanks in advance.

TBC15

Pete_Waggott wrote: »

This is my first post here so apologies if my query is not entirely relevant. I am considering retirement (I'm 61) and have lived and worked in Jersey since 1989. However, prior to moving here I was a teacher in Newcastle from 1978 - 1989, and paid into the Teacher's Pension Scheme. I presume that I can access any lump sum/pension (however small) but have so far drawn a blank with teacherspensions.co.uk as for some reason I cannot create an account there to check my status, and they seem unable to answer the phone. Any offers of help/advice would be greatly appreciated. Thanks in advance.

Probably worth starting a new thread on your particular query. As this one has no relevance to your needs.

Joey_Soap

TBC15 wrote: »

Just got off the phone with HMRC, as I would not be subject to tax on my pension in Oman I would be subject to UK tax.

Thank you. I doubt you asked the question but, if you drove across the border and got a job in the UAE then you don't pay tax on the UK pension? i'm kind of confused by the dual taxation treaty then.

dave_ave

Talking to a colleague at the weekend working at the same company as me in Abu Dhabi, he pays no income tax in the UK on his UK company pension. He filled in "some" HMRC form and was given a NT tax code.

Joey_Soap

dave_ave wrote: »

Talking to a colleague at the weekend working at the same company as me in Abu Dhabi, he pays no income tax in the UK on his UK company pension. He filled in "some" HMRC form and was given a NT tax code.

That'll be the DT-Individual form then. If you've already paid the tax then in that year's return you complete the SA109 form and the HS304 form. I use TaxCalc software for my self assessment returns and those forms are part of the software. For 17/18 I will be submitting both of them. For 16/17 I only had to do the SA109. Anyhow, that's how it seems to work to me!

TBC15

The Lamborghini brochure has been in and out of the bin during this thread so many times it looks like a Tory manifesto, there is no one who wants to get his hands on the cash tax free more than me.

The UAE treaty looks almost identical to the Oman one. The Oman treaty has been in force for quite some time. If the possibility of extracting ones pension tax free was a reality BA would have had to install industrial strength smug filters on all its flights from Oman, and the financial advisers would be queuing up to fill in your forms.

Does anyone know of anybody who has made use of the perceived benefits of the UAE treaty?

I really, really, really want to be wrong.

Joey_Soap

Sorry, I can't answer your question. i'll only know the answer for sure after I submit my 17/18 tax return. Since my draw down will be taxed when I draw it. If the (Oman) tax treaty claim is approved then yippee. If it's refused, I've lost nothing. So there is nothing to lose really.

TBC15

Could you come back and let us know what eventually happens?

bostonerimus

As a general rule DTs are there to avoid double taxation, not to eliminate tax. In the summary of DTs linked previously there is an ST note in the pensions column for a couple of countries with no income tax. I would expect that if there is no tax on a UK pension where you are tax resident then UK domestic law would step in to tax the pension. The treaty might indicate that no tax is payable, but it works in conjunction with domestic rules and laws and you should check with both tax authorities. UAE might tax foreign pensions and HMRC might impose the usual tax if there is no tax due to the UAE. You should expect to pay tax somewhere. UAE will be your primary tax authority if you are resident there.