Irish Pension

tin200

HI,My dad is 77yrs lived in this country for 54yrs and relized a few yrs ago he was able to receive an irish pension of around £3,500, in total per year gross he gets 17,000 of pensions, He went to his local tax office to get help with filling his self assement form in and they put his irish pension down as income from property abroad is this correct? now every year he has to pay £1000 tax is this because of this irish income? also he is not very good at filling out forms and gets his self very worked up about doing so and now last week his received another self !!! to fill out - will this happen each year? Please can someone help many thanks

Andy_L

It's obviously wrong. Its income from a pension abroad not property abroad. I would suspect some finger faff when they typed it into the HMRC computer as they both begin with P.

However according to this link, as he's resident in the UK he pays UK income tax on 90% of the pension (so 20% of 90% of £3500 = £630 tax)

tin200

Just one other thing will he have to fill out self assement form each year? I no I sound stupid but I havnt a clue!!

System

Andy L is correct there is a specific place on a foreign supplementary page for pensions from abroad. http://www.hmrc.gov.uk/forms/sa106.pdf

2/3 of the way down the 07/08 foreign page F2 he declares the full £3500 in column B, any tax taken off by the Irish in column C and the taxable amount of £3500 x 90% = £3150 in column F. If the Irish have deducted tax at source and there is a figure in column C then make sure he also ticks the box in column E that means the UK will take into account that some tax has already been paid abroad.

As long as he receives income from abroad he will have to complete a return, unless the governement change things again.