help - state pension in UK!!!

[april.will]

hi can anyone help

 

we wondering if anyone knew if you kept paying your stamp in UK but lived in OZ could you get your state pension when you retired?

 

also would you then pay tax on it when you bring it into OZ?

 

also does anyone know if you are tax exempt in Uk if you rent out a house but live in OZ?

 

thanks in advance

 

april & will:jiggy:

[Guest Guest31881]

hi can anyone help

 

we wondering if anyone knew if you kept paying your stamp in UK but lived in OZ could you get your state pension when you retired?

 

also would you then pay tax on it when you bring it into OZ?

 

also does anyone know if you are tax exempt in Uk if you rent out a house but live in OZ?

 

thanks in advance

 

april & will:jiggy:

 

Hi April,

 

You can pay a voluntary reduced NI contribution to keep your pension building from the UK, you have to pay 30yrs contributions to be on full UK pension, and it will be paid at the UK retierment age.

 

When the pension is paid to you in Australia, it would be classed as income and taxed in the same way as any other income.

 

At the moment your UK pension once paid is frozen at that rate and does not increase, but a court case is ongoing in the European courts to overturn that and a decision is due in March.

 

Sorry do not know about the house and tax, but someone will:biggrin:

[Guest]

Hi April,

 

You can pay a voluntary reduced NI contribution to keep your pension building from the UK, you have to pay 30yrs contributions to be on full UK pension, and it will be paid at the UK retierment age.

 

When the pension is paid to you in Australia, it would be classed as income and taxed in the same way as any other income.

 

At the moment your UK pension once paid is frozen at that rate and does not increase, but a court case is ongoing in the European courts to overturn that and a decision is due in March.

 

Sorry do not know about the house and tax, but someone will:biggrin:

 

Hi

 

Stop Press

 

The Appeal Court judges at the European Court of Human Rights are due to hand down their verdict on 16 March - but don't hold your breath on the result! Even if there is a "win" situation, the UK government will doubtless appeal which will delay any settlement by at least another couple of years! If there is a "lose" situation, this would be as far as this particular case can go.

 

Perhaps the OP would like to join up to the cause at British Pensions in Australia - there is no moral justification for the UK state pension to be index-linked and uprated in some countries but not in others - it should be "everywhere" or conversely "nowhere". Unfortunately, governments do not believe in moral justifications, only legal ones, and sometimes not even then!

 

Regards

 

Jim

[julzcary]

From my understanding (although not from any professional expertise!), you need to notify the tax office as a 'non-resident landlord'. Its a little complicated, but if the rent is over £100 per week, the managing agent has to deduct the tax. The other issue is, if you are classed as non-resident in the UK for tax purposes, your income from the UK would be an income assessed for tax in Australia.

 

Its certainly not a straight forward issue, and something you may wish to take professional advice on.

[Guest Jackie Smith]

If you have less than 30 qualifying years for state pension purposes, it is worth considering topping up your NI to make sure you get the maximum UK state pension at retirement. As you are still in the UK you can take action to ensure you can top up at a rate of £2.40 per week rather than the usual £12.05 per week.

 

If you come here on a permanent visa your pension will be taxable in Oz regardless of whether or not you transfer it to Oz or leave it in the UK.

 

The rate of pension is frozen at the date you start to receive it - you will be entitled to all annual inflationary increases until you reach retirement age - and even then you can delay receiving the pension if you want to qualify for a higher pension.

 

You must declare your UK rental income and expenses on your UK tax return. If the property is jointly owned, then you must declare the appropriate share of income and expenses on the tax returns of the joint owners. After your personal allowances, you may find there is no UK tax to pay. If you are coming to Oz on a permenant visa, you must also declare your UK rental income on your Australian tax return - you can claim a tax credit for any tax you have aid in the UK.

 

If you want further details re any of the above issues, feel free to PM me.

[Guest The Ropey HOFF]

Hi everyone

 

post to follow having trouble with my computer.

 

if we have full uk pension rights, what is the 9% pension for in Australia, is an extra pension on top of the uk one.

 

cheers for any info jim.

[Guest Guest31881]

Basically yes... If you pay into a supa scheme here in Australia you will get that plus your UK pension.

 

I have a small (very bloody small) NHS pension, when i retire i will keep my NHS pension, My UK pension plus any pension I may have earned in Australia

[Guest The Ropey HOFF]

Basically yes... If you pay into a supa scheme here in Australia you will get that plus your UK pension.

 

I have a small (very bloody small) NHS pension, when i retire i will keep my NHS pension, My UK pension plus any pension I may have earned in Australia

 

Thats just plain greedy, you have just given me a boost, i can draw my prison pension at 60, my wife can draw her NHS one at 55 i think, plus our state pensions at 66 and any more pensions we earn in the future in Australia, MARVELOUS!!!!!!!!!!

 

Jim:wink:

[Guest Guest31881]

Thats just plain greedy, you have just given me a boost, i can draw my prison pension at 60, my wife can draw her NHS one at 55 i think, plus our state pensions at 66 and any more pensions we earn in the future in Australia, MARVELOUS!!!!!!!!!!

 

Jim:wink:

She can draw NHS pension at 50 (self early retire), but not worth it, you lose to much of lump sum and she would not get annual increases till she is 55. So 55 best time to claim if going to claim early.

[Guest Jackie Smith]

So Jim, Do you think it's a good idea to top up your National Insurance Contibutions to increase your state pension entitlement?

[Guest The Ropey HOFF]

So Jim, Do you think it's a good idea to top up your National Insurance Contibutions to increase your state pension entitlement?

 

Hi jackie,

 

i think the answer to that is YES. If you only have to pay about £10 per month to top it up then i think it is a must. Just a thought though, i have worked 34 years so i will have a full pension, but my wife Helen has only 26 years, so will she have to just pay the £10 per month for another 4 years or will she have to pay until, say she retires, does anyone know the answer to this, i bet Colin knows he is a font of information.

 

jim

[Guest Guest31881]

she has to make 30yrs contributionsfor full pension, so another 4 yrs will see her get a full pension, then she can stop

[Guest The Ropey HOFF]

she has to make 30yrs contributionsfor full pension, so another 4 yrs will see her get a full pension, then she can stop

 

Cheers for that,

 

everytime you tell us something it is good news, our retirement age has gone up to 66 and 68 for our kids, whats the retirement age in Australia.

 

jim:wink:

[Guest Guest31881]

Cheers for that,

 

everytime you tell us something it is good news, our retirement age has gone up to 66 and 68 for our kids, whats the retirement age in Australia.

 

jim:wink:

 

It depends on your age now, Like the UK it is rising, here is the page to check it out.

 

Age Pension - eligibility

[Guest]

Thats just plain greedy, you have just given me a boost, i can draw my prison pension at 60, my wife can draw her NHS one at 55 i think, plus our state pensions at 66 and any more pensions we earn in the future in Australia, MARVELOUS!!!!!!!!!!

 

Jim:wink:

 

Hi

 

My apologies in advance if this comes from doom and gloom-ville!

 

Your big issue at the moment, and perhaps for the forseeable future, is of course the exchange rate on any pensions earned from UK which you need to draw on to exist and which you will be taxed on over here under different rules to born and bred Australians who can now benefit from the Simpler Super tax arrangements whereby they generally pay NO tax on any Super payments (pensions) over the age of 60! They don't even have to declare it. You will still be taxed at the standard nominal rate. Hopefully this MAY change under the the current review of the double taxation agreement between the 2 countries which has been ongoing for the past 16 (?) months. A level playing field would be good, yes?

 

The Australian dollar has always been a very fickle currency but you could almost "guarantee" a quick recovery from any dip in the value of the Pound against the dollar. This appears now not to be the case and the recent GFC may only be the precursor to further woes. Pound sterling is rapidly becoming one of the basket cases in the financial world - you would never had said that just a couple of years ago. A clear result in the upcoming general election MAY help the cause but there are far too many underlying issues for this to be resolved any time soon.

 

I do hope I'm wrong and have read all the signs incorrectly but.....!

 

Chin up - you're British - and we're all in the same boat !

 

Regards

 

Jim

[Guest Guest31881]

Anyone who claims or will claim a UK pension in Australia should look at "British Pensions In Australia" web site. You can find information on Tax breaks and other info on claiming your Pension in Australia.

 

British Pensions in Australia

[Guest adsmith]

Hi all,

Just had a chat with the pension service about this matter. Apparently if you arent of pensionable age then its HMRC that you need to inform and pay your voluntary contribution to. So I called them and a very nice geordie lady pointed me in the direction of this form - CF83

 

http://www.hmrc.gov.uk/pdfs/nico/ni38.pdf

 

Hope this helps someone and saves a few phone calls (flippin 0845 numbers!!)

 

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[nikdavis]

Hi All,

I have read on this post that you can apply to continue to pay national insurance contributions once you have emigrated, to ensure you get a full uk state pension. I also read that you can take steps to ensure you only pay £2.40 per week instead of the usual £12.05, anyone know how to go about doing this?

Thanks.

[Guest Jackie Smith]

Please PM me if you want further info on how to qualify for the cheap contribution rate.