moving away

macushla

I am thinking of moving to live in the Isle of Man near my sister,will I still have to pay the income tax I pay here after I have moved.I am a 61 year old pensioner paying far too much tax.I am at present a K code.

macushla

please someone must know the answer to this question !!!!

Dithering_Dad

Why are you on a K code while retired? The last time I was on a K code was when I had a company Car and the taxable benefit of that wiped out all of my tax free allowance. I think K is also used to retrieve underpaid tax.

Do you owe tax from your previous employment?

basil01_2

Hi not an expert on Isle of Man taxes but;

If you move to the Isle of Man, i.e. become a resident not just a holiday. After a personal allowance of £8,500 income tax is levied at 10% of the first £10,500 of taxable income and 18% on the rest. Married couples have a joint personal allowance of £17,000 then income tax is levied at 10% of the first £20,600 and 18% on the rest.

Isle of Man is free from Capital Gains and Inheritance Tax.

If you owe any tax in this country, prior to your move, you would still be liable for it at UK rates.

shropshirelady

In my local area last week, I got talking to a couple of visitors who told me they moved to the Isle of Man a few years ago. I was asking similar questions. They said that their pension is taxed in the UK. I didn't get to ask how this works or why though.

EdInvestor

macushla wrote: »

I am thinking of moving to live in the Isle of Man near my sister,will I still have to pay the income tax I pay here after I have moved.I am a 61 year old pensioner paying far too much tax.I am at present a K code.

It depends.It's a requirement of most UK Govt pensions (eg civil service, NHS,LGPS,teachers) that they are taxed here, but there are a few countries where they can be taxed locally. Most other pensions including state can be paid gross and taxed in the country of residence.

Step one would be to communicate with the Revenue and sort out a proper tax code,I'd have thought. It is initially quite complex for retirees,to be sure, but it will get sorted eventually.Do you yet receive a state pension?