Pension, retirement, thoughts and questions

[bobnuts]

I've been here a while in different ways. Non immigrant B, work permit for a good few years, then non O-A based on marriage, then just odd times in and out on 30 day non visa entries. I'm a UK national and looking at retirement now so I have a few questions about how things are and what I can consider, or at least start to think about.

 

I have a UK final salary pension that pays more than the stipulated minimum monthly, yeah even at the sucky exchange rate today ???? I am aware that embassies no longer provide letters of so called 'evidence'. At least UK embassy does not I understand. What therefore are my options for having my pension accepted as a route to securing a retirement visa/extension of stay?

Pension can be paid anywhere and I am not particularly bothered if that needs to be Thailand, I have a bank account here.

 

I'm not interested in the 400/800 k in a bank deal. I want to use my pension and my understanding is that it is allowed, I would like to know what I need to do to go that route.

 

With regard to the UK final salary pension I have a couple of questions. My pension provider has given me figures which I presume are before UK tax, however I have been non-resident for tax purposes for more than 25 years and I presume that my pension will not attract tax either. Is that correct?

 

The pension provider suggests that this final salary pension will attract interest at certain rates on certain portions. Will that apply if I am considered not resident in UK?

 

My UK basic state pension is not due for another couple of years, I understand that will not be index linked.

 

I am talking to the pension provider about some of these things though obviously the visa stuff is not their bailiwick.

 

Any thoughts much appreciated.

 

Bob

 

 

 

 

[UKresonant]

4 minutes ago, bobnuts said:

With regard to the UK final salary pension I have a couple of questions. My pension provider has given me figures which I presume are before UK tax, however I have been non-resident for tax purposes for more than 25 years and I presume that my pension will not attract tax either. Is that correct?

 

The pension provider suggests that this final salary pension will attract interest at certain rates on certain portions. Will that apply if I am considered not resident in UK?

 

My UK basic state pension is not due for another couple of years, I understand that will not be index linked.

Tax will be deducted in the UK, if it exceeds your personal allowance currently 12500 GBP (presuming that is still applicable to your situation), you would have to claim any tax back. If your were resident you would probably have the up to 25% tax free option  available don't know what happens in your situation??

 

You mean indexation of the final salary pension? Should be still applicable any where, unless your scheme rules are strange?

 

UK State Pension not indexed if not uk tax resident and staying in Thailand  (only the Philippines is set up for UK state pensioners to get indexation).

[bobnuts]

16 minutes ago, UKresonant said:

Tax will be deducted in the UK, if it exceeds your personal allowance currently 12500 GBP (presuming that is still applicable to your situation), you would have to claim any tax back. If your were resident you would probably have the up to 25% tax free option  available don't know what happens in your situation??

 

Thanks, but confused. My last tax code shown on a pay slip when I worked for a UK company but was non-resident is NT (No tax) I paid no UK income tax in the last years I worked for said company as I was declared not a UK resident for tax purposes, the tax man actually repaid me 5 years of tax that I had been paying when I shouldn't have. My status has remained unchanged since then. Your comments suggest I might still pay tax above the personal allowance ceiling based on my current status as non-resident. Is that what you meant?

 

I think the last time I paid UK income tax the personal allowance was about 4500 GBP. How times change.

 

Thanks for the thoughts. ????

[Jip99]

All income derived from the UK is taxable.

 

You have income, you have a personal allowance and the tax rates are applied to the remainder.

[ThaiPauly]

^ What Jip says is so.

[pontious]

1 hour ago, bobnuts said:

With regard to the UK final salary pension I have a couple of questions. My pension provider has given me figures which I presume are before UK tax, however I have been non-resident for tax purposes for more than 25 years and I presume that my pension will not attract tax either. Is that correct?

 

No - you will pay tax at the relevant rate after your personal allowance has been deducted.

[UKresonant]

You may also wish to consider the timing of sending the pension to Thailand as well, if you do have a buffer of a calendar years money, you may wish to isolate it and transfer that 12 x 65k+ in the following calendar year. (unless it is a civil service/military one, under the tax treaty). Not an issue at present, but good practice perhaps? You will have to research that bit yourself!

 

As for method, I find SWIFT transfers from a Lloyds/Halifax account to work OK £9.50 charge UK end... To a Krungsri £FCD account 0.25% deposit charge (min 200baht), then exchange to THB at their daily TT rate, no passbook, but gives a nice SWF code, and the local branch could print 12 months transactions in a couple of minutes. Debit card ???? to withdraw cash, or convert£ into a linked THB account. 

 

I'm not and extension person, just playing with the method at the moment???? 

Edited October 15, 2019 by UKresonant

[SantiSuk]

The rationale behind the requirement for you to pay tax in the UK on your pension income is that HMRC assume that whatever your residence status now or in the past, if you are receiving pension income from a UK entity it implies that it is in respect of your service either in the UK or to a UK company or similar entity.

[bobnuts]

Okay guys, I get the picture I think. So some of my pension will be taxed. I'll get the personal allowance and then be taxed on the rest, UK resident or not.

[bobnuts]

5 hours ago, SantiSuk said:

The rationale behind the requirement for you to pay tax in the UK on your pension income is that HMRC assume that whatever your residence status now or in the past, if you are receiving pension income from a UK entity it implies that it is in respect of your service either in the UK or to a UK company or similar entity.

This pretty much matches a conversation I had with HMRC in the early days of applying for my tax refund. They had questioned my employment by a UK company suggesting that income arising (important word) in the UK would be taxed in the UK. When it became clear that whilst I was employed by a UK company all of the work I did for that company, which generated my income , was performed outside the UK. They agreed that would not be taxed and I did indeed get a full refund of 5 years tax. I doubt this is a relevant matter but gives pause for thought. My total non-resident status whilst employed by a UK company accounts for exactly half of my pensionable service.

 

More than anything I am now very aware that I think I should check with the pensions advisory service at least and get more input.