Legal theiving

[happy daze john in oz]

We receive three pensions here in Oz.
Part state pension, part UK pension and pension from our superannuation.

As all were taxed at source we pay no tax now.
Have no need to lodge a tax return as Information shows that all pensions do not need to be shown on the return.

I raise this as my brother in law in UK has what he calls a tax problem.
He is not computer literate, or maybe literate at all, but that is another story.

He lost his wife late last year and receives a state pension along with a private one from his last employer, plus part of his late wife's one.

He tells me the Tax man wants a share of his income!!

Long time since I had anything to do with UK tax so could not assist him.

What are the current regulations in UK regarding tax for someone in his 70's?

[Ivan Cloherty]

There is a ceiling on what you can receive from pensions and superannuation, currently around £12,000 per annum, anything over this is taxed and deducted at source, so you are not required to fill in a tax return if these are your sole sources of income. Tax on Interest earned on Bank accounts (for those lucky enough) is deducted at source

[j.sabourn]

#1... snap John the only difference is I have always paid tax whilst working and in retirement on the MNOPF. This is not taxed in the UK and gets lumped in with the other two pensions , the part Australian and the NHI one from the UK. JS

[Tony Taylor]

Tax threshold in the UK is £12,500, so if your income, pensions are included, is less than £12,500 you will not pay tax. Anything over that is taxed at 20% upto about £40k, when the rate goes up to 40% for anything over £40k

[vic mcclymont]

If you earn over the threshold in the UK your state pension is included in the calculation for tax purposes. The taxable element of the state pension is deducted from your private pension.
Vic

[j.sabourn]

The tax system in Australia is different than in UK. E.g. you get no tax relief on your own house and mortgage. But you do get relief on any rental properties you have. If I remember in the UK one got allowances for wife and family, here in Australia I wish they went along with that, but myself has always been taxed as an individual, and
my wife also as an individual , she doesn’t pay tax but I do. If you added all pensions together and divided by two there would be no tax payable. As it is I pay about $2000 a year. JWS

[Tony Taylor]

mortgage tax relief and married allowance was stopped many years ago. There is a potential to utilise your wifes tax allowance if your income is below a certain amount, not sure what the amount is but it is not very high around £15/16K.

[j.sabourn]

Then the tax system must be even closer to the uk than I thought . I never paid tax in the uk when working for uk ships as was always paye. And deducted at source. Via a tax number you had with all your allowances on. JS

[Tony Taylor]

John paye still is the norm and tax is deducted by employers from your salary. I get a company pension which is taxed at source as my state pension is near the tax thresh hold .

[Mark Keever]

" Our new Constitution is now established, and has an appearance that promises permanency; but in this world nothing can be said to be certain, except death and taxes. " Benjamin Franklin - 1789.