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Tax - Pensions

Discussion forum for expats moving to or living in Portugal.
Subforums: Property for Sale/Rent, 2nd Hand Items for Sale/Wanted

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Tax - Pensions

Post Posted: Wed Jul 09, 2014 10:49 pm

Bit slow of me really but I've just found out some info which I should share with you.

In the UK, when you buy an Annuity from your retirement pension you are entitled to take a cash free lump sum; putting the balance into an annuity.

Even if you take out a Drawdown Policy with your retirement pension, each year you can take a cash free lump sum and re-invest the balance.

However, if you are resident in Portugal and pay your taxes here, it is not a Tax Free lump sum. You have to pay tax on it even though it is paid into a UK Bank!!!!

Could be a good argument for continuing to pay your taxes in the UK.


_________________

Rod S

 

rodstocker
Forum Leader - Portugal
Forum Leader - Portugal
 
 
  
Re: Tax - Pensions

Post Posted: Thu Jul 10, 2014 12:27 pm

"Could be a good argument for continuing to pay your taxes in the UK"

As a Resident your tax liability is to Portugal not UK it's not an option to solely pay tax in UK, if you haven't altered your UK tax status to a Non Resident then you'd have to reclaim any tax HMRC has deducted as Portugal will tax you unless their prepared to accept any proof of UK tax paid.
Annuities are treated differently in Portugal to UK

 

Canoeman
Forum Legend
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