# Income tax on UK pension?



## EmiratesExPat (Sep 4, 2014)

Hi, first time poster, so please be gentle...

Just over a year ago I moved to Abu Dhabi from the UK (expat), and have a question about the pension I am in receipt of.

I'm currently receiving benefits from a civil service final salary pension, and being taxed at 40%. I am wondering if anyone has any experience or suggestions on what I can do to reduce the amount of tax I am being paid, as I don't really want to have to pay it if I don't have to?


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## metmanph (Jan 4, 2013)

This link may help:
HM Revenue & Customs: Tax when retiring abroad or back in the UK

If in doubt, ask HMRC.


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## DaveHayden (Mar 15, 2013)

I'm not sure if this is of assistance but I have colleagues in receipt of a Military Pension who pay zero tax on it out here.


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## frenchie587 (Apr 21, 2014)

What happens is that you fill out form P85 on-line informing HMRC that you are not in the country and in receipt of a pension. 
You are then entitled to your personal allowance which is 10k before you pay tax. They are allowed to do this as the pension was earned in the UK 
Some people will pay zero tax on their pension providing they are under the threshold or have some wonderful tax dodge.


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## Andy17 (May 30, 2013)

EmiratesExPat said:


> Hi, first time poster, so please be gentle...
> 
> Just over a year ago I moved to Abu Dhabi from the UK (expat), and have a question about the pension I am in receipt of.
> 
> I'm currently receiving benefits from a civil service final salary pension, and being taxed at 40%. I am wondering if anyone has any experience or suggestions on what I can do to reduce the amount of tax I am being paid, as I don't really want to have to pay it if I don't have to?


Hi I came out for a year with my wife and when I looked at the question I found that Abu Dhabi is not somewhere that one can have a civil service pension paid. My pension was therefore paid in the UK and subject to the normal tax rules in the UK. Hope that helps a little.


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## nikkisizer (Aug 20, 2011)

frenchie587 said:


> What happens is that you fill out form P85 on-line informing HMRC that you are not in the country and in receipt of a pension.


You should not submit form P85 to HMRC if you have completed or are required to complete a self assessment tax return for the tax year that you leave.


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