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Tax in two jurisdictions

  • 06-11-2020 12:07pm
    #1
    Registered Users, Registered Users 2 Posts: 352 ✭✭


    I apologise if this is a silly question, but I can't find the answer anywhere else.
    I live and work in Ireland and intend working well beyond retirement age next year. I can also claim my UK state pension next year.
    Is it possible to be taxed on my UK pension in the UK and not include it in my Irish income? If I can do that, the amount of the pension would fall below the UK annual allowance so would basically be tax free. If it's taxed here with my Irish income, it will be taxed at 40%.
    Is it possible to do this or will I just have to declare it here?


Comments

  • Registered Users, Registered Users 2 Posts: 958 ✭✭✭Stratvs


    https://www.revenue.ie/en/jobs-and-pensions/pensions/taxation-of-foreign-pensions.aspx

    The UK state pension would normally be coded into your Irish PAYE record so tax on that would be collected by increasing the tax paid on your continuing employment here.


  • Closed Accounts Posts: 873 ✭✭✭StackSteevens


    twignme wrote: »

    I apologise if this is a silly question, but I can't find the answer anywhere else.
    I live and work in Ireland and intend working well beyond retirement age next year. I can also claim my UK state pension next year.

    Is it possible to be taxed on my UK pension in the UK and not include it in my Irish income? If I can do that, the amount of the pension would fall below the UK annual allowance so would basically be tax free. If it's taxed here with my Irish income, it will be taxed at 40%.

    Is it possible to do this or will I just have to declare it here?

    Nice try - but I'm afraid that you have to declare it here!

    Revenue will tax the gross amount and will allow no credit for UK tax deducted, if any, on the basis that such tax is refundable by the UK authorities.


  • Registered Users, Registered Users 2 Posts: 55 ✭✭relevanc


    You will need to submit a form to HMRC ( forget the name of it) making a declaration that you are tax resident in Irish and therefore your UK pension is exempt from UK tax.
    Your need a letter from Revenue of Irish resident/tax status to confirm same to HMRC. And you’ll need to file a F11 annually


  • Registered Users, Registered Users 2 Posts: 352 ✭✭twignme


    Thanks all for the replies and also for the link Stratvs. I thought that might be the case and at least I now have it clarified.


  • Registered Users, Registered Users 2 Posts: 1,447 ✭✭✭davindub


    twignme wrote: »
    Thanks all for the replies and also for the link Stratvs. I thought that might be the case and at least I now have it clarified.

    Probably worth getting a tax advisor if you are not domiciled in Ireland.


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  • Registered Users, Registered Users 2 Posts: 352 ✭✭twignme


    davindub wrote: »
    Probably worth getting a tax advisor if you are not domiciled in Ireland.

    Thanks davindub, I do live here and fully resident but spent some years in the UK which means my finances are a little 'intertwined' with state and private pensions. I do agree that I will need to get some tax advice though as everything seems to be oriented towards retiring at 65/66 and not working beyond.


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