It is currently Mon 9 Dec 2019 20:20 GMT
Change font size

    Latest Message from British Expat:

  • Five questions about Slovakia – Quick Quiz
    To your average Briton, Slovakia is one of Europe's less well-known countries. Why not do something to change that sad state of affairs with our Quick Quiz?

Money matters

Tax on pensions

No, really... it does!
But does it matter more in Malta than at home?

NO ADVERTISING - financial services adverts belong in our classifieds section. Get-rich-quick schemes belong in the trash.

Tax on pensions

Postby Brightside » Wed 25 May 2016 13:50 GMT

I currently receive pensions from two workplace pension schemes, one is an NHS pension and one a teaching pension. Both are taxed in the UK, paid into a UK bank account and I transfer funds to Gozo as and when. I have now been told ( by an adviser in Malta) that I need to have the NHS one taxed in Malta ..... Whilst I would be taxed at a lower rate so it will probably be beneficial I don't understand why I have to do this as I thought paying tax on the pension in the UK would be enough and why one and not the other?
There's loads more to see and do on British Expat— why not check out our home page?
Posted by:
Brightside
Premium Member
 
Posts: 98
Joined: Fri 10 Feb 2012 15:03 GMT
Location: Gharb

Re: Tax on pensions

Postby gozomark » Wed 25 May 2016 14:48 GMT

in general terms, income is taxable both in the UK and in Malta, but the UK tax is offset thanks to the double taxation treaty. Some pensions are exempt from this, but I'm not sure which ones ! possibly only one pension is exempt per person, but I'm guessing - are either or both of the pensions subject to automatic tax deduction in the UK ?
Posted by:
gozomark
Site Admin
 
Posts: 14215
Joined: Sun 20 Aug 2006 18:35 GMT
Location: Republic of Gozo

Re: Tax on pensions

Postby Brightside » Wed 25 May 2016 15:27 GMT

Both are automatically taxed at source. I have a third that kicks in next year too. I can't believe that a teaching, a local authority or an NHS pension are going to be outside the treaty so it may be that only one pension counts. I think I will need to question my adviser.
There's loads more to see and do on British Expat— why not check out our home page?
Posted by:
Brightside
Premium Member
 
Posts: 98
Joined: Fri 10 Feb 2012 15:03 GMT
Location: Gharb


Return to Money matters