Tax on pensions

10/29/2011 - 21:38

I plan to retire to Italy in 3 - 4 years time and leave the UK permanently. I no longer want to pay any tax to this country (UK) but worry that I may be financially worse off in Italy. My pensions will be quite modest (state + 4 mediocre private schemes), how does the �� system compare? Is there an allowance followed by a standard reduction or is it more complex? I'm sure there are many of you who have chosen to dump the UK covert corrupt system for the �� overt corrupt system. Can you shed any light on which will be most beneficial or will I be tied to the italian system because I will become a resident?

Topic

Tax and Finance

Location

Umbria

Comment

michelangelo, I believe.................Government / state pensions are taxed in the UK, with appropriate allowances being applied. Private pensions should be taxed in Italy, with NO allowances. Effect therefore = worse off ? Having said that, well worth the few grand per year extra !!! S

If you go to the top right hand corner of the page, you will find the Seach engine. Enter the words "tax UK pensions", press the "Search" button and you will find plenty of information about this topic. I understand that we are all frustrated by our governments, but do not become emotional on this. Treat it as a simple commercial transaction.

Gala I'm not emotinal about Government as they are in reality all the same (certainly in the uk). My anger is towards the HMRC which appears to operate above government, demonstrated by the recent situation where a senior tax officer lied to a commons select committee and is still in his post. I have become frustrated at the way the lower paid are penalised whilst the multi nationals (Goldman Sachs, Vodaphone to name two) get away with absolute murder.

I posted this some time ago, but it may still help on pensions. Hope this helps

Michelangelo, I do understand your frustration; however, the UK government and the HMRC are not alone. Most governments around the world are doing the same and there is very little that we can do about it. This is why my friendly advice is to look at what is more financially convenient for you. Read all the past posts or look for professional help. It could save you lots of money.