Receiving a UK pension whilst working in Ireland

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ukpokerguy

Registered User
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I'm due to turn 60 in Oct 2021.

As a UK citizen I took out an pension in Feb 1988, paying in £100 a month. Despite the fact I moved to live & work in Ireland in 2000 I continued to pay the £100 a month and have continued to do so to this day.

As such my UK 'pension' becomes payable on my 60th birthday will amount, according to latest projections from the pension company, to £1000 a month.

I will continue to work here in Ireland for a time after that date but want to know...

- Will I need to fill out a yearly tax return in the UK for the £1000 a month received from the UK pension company and pay tax in the UK on this income
or
Do I inform the Irish tax authorities of this UK pension income so that they then include this amount in my Irish tax calculations and then NOT do a UK tax return?

Any information will be gratefully received!
 
If you are tax resident in Ireland you will get taxed on world wide income so it should be declared here. However double taxation will exist as the U.K. will also look to tax it.

The double tax agreement between Ireland and the U.K. will try to solve this for you. I think, generally under the pensions article in these agreements the country where you are resident of will get the taxing rights. So for you that should be Ireland.

The agreements are all on the revenue website.
 
I have a related question.

I am 55 and currently in full time (public service) employment in Ireland. I can now draw down a small pension (c£10,000 lump sum & £1,400 annual pension) from my time working in the UK 25 years ago. I am tempted to do so as there is little difference between the lump sum/pension I will get if I take it now as compared to deferring it until some future date when I retire in my sixties. In addition I could do with the money now to deal with college costs and work around the house which has arisen recently.

My question is - do I still get the lump sum tax free even though I am still working. How do I go about querying this?

Thanks.
 
Hi,
I got a uk work pension when I turned 60 last year. I was provided with a form from the pension scheme when I was not resident in uk for tax (I am working and resident in ireland since 2005). I had to contact the uk tax system. I got the lump sum tax free and got a revised ( reduced) tax credit so that I
started paying tax on it straight away via my current paye system !!!. Very efficient of the tax system. I had to do a tax return this year as the pension was additional income but that worked out ok. They had stopped too much tax in the first year but i got that back. It all seems sorted now for this year, correct tax credit in place.
I too chose to have the pension now rather than defer and it allowed me to go to a 4 day week.
 
Thanks for that Stitcher - my main interest at the moment is accessing the full tax free lump sum - My concern was I would be caught for tax on the lump sum given that I am working .

Thanks again.
 
GingerH - Your 'tax free lump sum' is, as it says on the label...'tax free'. Regardless of the fact you continue to work or not. I have had two pension schemes already paid out their 'tax free' portions with no tax implications. Enjoy :)
 
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