Government/Local Authority Pensions

Hi,

I will be coming over to La Finca in October in receipt of what I think would be classed as a government pension as I have worked for a local authority all my life.

However, I'd like to be certain that I will be taxed in the UK and not Spain with that sort of pension.

Anyone else got a Lothian Pension Fund pension and knows what the story is?

Stuart Graham

When you become a fiscal resident in Spain then, although your Government Pension is taxed in UK and UK only, you will have to declare it on your Spanish tax return as exempt income. This may have the effect of pushing any Spanish income you have into a higher rated tax band, depending on the value of your total worldwide income.

When you do your Spanish Tax Return next year make sure you've got your P60 to show you've paid Tax in the UK on your Pension.

Lothian Pension scheme is not a Government Pension scheme therefore it will be taxed in Spain not UK

If I were you I would clarify whether it is classed as a Government Pension by getting in touch with HMRC. It looks a grey area as it is a Local Government Pension. You have to tell them your new Address anyway. Best to get it correct to save problems later on. You can't choose.

Thanks folks!

Lothian Pension scheme is not a Government Pension scheme therefore it will be taxed in Spain not UK

The above information from jpeg is incorrect. Lothian Pension Scheme is a Local Govt Pension Scheme and therefore taxable in the UK.
I have a UK state pension, Local Govt Pension and 2 small private pensions all of which are taxed in UK

Thanks Ron, cheaper to get taxed in the uk!!!!

Ron Hill wrote:Lothian Pension scheme is not a Government Pension scheme therefore it will be taxed in Spain not UK

The above information from jpeg is incorrect. Lothian Pension Scheme is a Local Govt Pension Scheme and therefore taxable in the UK.
I have a UK state pension, Local Govt Pension and 2 small private pensions all of which are taxed in UK

I am sorry Ron Hill but, other than your Local Government Pension, the other pensions you receive are most certainly taxable only in Spain. Your Local Government pension must be declared on your Spanish tax return as exempt income. That is, of course if you are a fiscal resident in Spain.

Please see a thread I started earlier in the year.

taxes-in-spain-suma-nie-and-general-tax-advice-f111/spanish-tax-allowances-tax-bands-and-a-tax-return-eg-t28057.html?hilit=earned%20income#p122524

That's why I suggested asking HMRC for the correct Tax liability because otherwise if you have to leave Spain for any reason the TAX AUTHORITIES will catch up with you.
You can't pick and choose where you pay Tax if you are a Fiscal Resident in Spain.