UK pensions may be overtaxed

UK pensions may be overtaxed

Pensioners in Gibraltar who are in receipt of UK pensions may be paying more UK tax than they should be.

Errors made by HMRC when issuing PAYE codes are resulting in Gibraltar residents who receive UK pensions not receiving their tax free allowance. The personal allowance in the UK is £9,440 for pensioners born after 5 April 1948 and £10,550 for those born between 6 April 1938 and 5 April 1948. For example, someone receiving UK pensions and not receiving personal allowances could be overpaying tax in the UK by up to £2,000 per annum.

Angela White at Hassans comments:

“We are seeing more and more of these cases and have been able to obtain substantial refunds for a number of clients. Those receiving UK pensions should check that their PAYE tax code is correct and if they are unsure they should contact a specialist.”