# UK income tax



## pvreed (Jul 24, 2011)

I am getting confusing advice about whether or not I will have to pay UK income tax on my pension if I become resident in Portugal. From what I could see on the internet, tax will always be due on pensions originating in the UK, irrespective of resident status. Yet several people have told me that they don't pay tax on their pensions, now that they have become non-resident as far as the UK is concerned.

I am aware that, for new residents, Portugal has a ten-year period during which no tax applies on pensions, investment income and capital gains. Clearly, I would like to take advantage of this.


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## canoeman (Mar 3, 2011)

See the post I've just done, as a Portuguese Resident you must file a return on worldwide income Pensions come under that category, many people decide to just ignore it or have been told by other Expats, Financas and accountants here just ignore it, personally I've always considered this bad advice.

The new rules clarify the situation further, so if your pensions are more than 293€ per month you must file a return and as my friends information says that doesn't mean you'll be taxed but could be fined if you don't

Certain UK Pensions are and can only be taxed in UK i.e military, police, certain NHS, teachers etc these should still be declared in Portugal but also the tax paid so your not taxed twice because of treaty. Any other pension/s you should take advice on what you *might* pay in tax here and then decide whether you opt to pay UK or Portuguese tax, but if you opt to pay in UK you still must file a return here.

"Portugal has a ten-year period during which no tax applies on pensions, investment income and capital gains" yes it's something you can* apply* for, it is not automatic but as I said to another poster on same subject, you need a good accountant to apply for you and you should weight up the cost of this against any possible tax you might pay on your pension here i.e. it might cost you more than the tax would be


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## Ronnie_Yook (May 9, 2012)

Is the Tax Return Form in Portugal the "Modelo 3" ?


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## canoeman (Mar 3, 2011)

Yes and then you also need various Anexo's depending on what your declaring "H" as an example is for Pensions, health, schooling etc


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## Ronnie_Yook (May 9, 2012)

As always Canoe...many thanks for your help.:clap2: 

PS: The Modelo 3 is in a garish red print...does this have to be completed using red ink!!


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## canoeman (Mar 3, 2011)

No, think colour to designate new style forms this year, its far easier to complete and file online gives you an extra month, alao a handy check tool

Did I put Anexo "H" for pensions? should have been "J" H is for heath etc


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## Ronnie_Yook (May 9, 2012)

Many Thanks Canoe, for info, and, I will double check for "J".


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## canoeman (Mar 3, 2011)

Download has Anexo available in ribbon o top or you can go to Financas site and download from here, but can't use these for online filinf that has to be done from main download

Portal das Finanças - Descrição Imposto sobre o Rendimento das Pessoas Singulares - IRS


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