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Re: POUND DOING WELL
Posted: Sun Feb 25, 2018 10:34 am
by Dominic
trevnhil wrote: ↑Sun Feb 25, 2018 9:15 am
On the 23rd of June 2016, the exchange rate was 1.3039.. If some people think that pensions have gone down by a third since then... Think Again.. If it had reduced by a third.... then the exchange rate would be giving you 0.87 Euros for every pound of your pension...
The rate is not that low, it stands today at around 1.14 ..
So yes pensions have reduced from what they were when the brexit vote was taken, but not by the percentage rate mentioned above. It is more like a 12% reduction..
Have to agree. Even if you take the Exchange Rate at 1:40 which is what it was when the markets thought that Remain were going to walk it, it is not a reduction of a third.
Re: POUND DOING WELL
Posted: Sun Feb 25, 2018 6:20 pm
by Firefly
Lincoln
Nice to know some people are
Jackie
Re: POUND DOING WELL
Posted: Sun Feb 25, 2018 8:22 pm
by Poppy
Lincoln if you lived in the UK you would have to have a pretty good state pension to pay tax on it! The personal allowance is £11850 from April which can be increased further by the marriage allowance of £1185( this can be claimed from your partners allowance if their income is below the tax liability) so you can actually receive £13035 before the need to pay tax so admittedly not as generous as Cyprus but it normally means you would only be liable for tax if you have additional income to your basic state pension.
Re: POUND DOING WELL
Posted: Sun Feb 25, 2018 9:27 pm
by Varky
Poppy wrote: ↑Sun Feb 25, 2018 8:22 pm
Lincoln if you lived in the UK you would have to have a pretty good state pension to pay tax on it! The personal allowance is £11850 from April which can be increased further by the marriage allowance of £1185( this can be claimed from your partners allowance if their income is below the tax liability) so you can actually receive £13035 before the need to pay tax so admittedly not as generous as Cyprus but it normally means you would only be liable for tax if you have additional income to your basic state pension.
I think Lincoln means that he is better off in Cyprus than UK, Tax being one of many reasons. Please let's not hijack this thread to go on about the pros and cons of living in Cyprus
Re: POUND DOING WELL
Posted: Sun Feb 25, 2018 10:16 pm
by Poppy
Lincoln quite clearly stated that if he lived in the UK he would be paying tax at source on his UK pension. I am just clarifying that he would not pay tax on a basic state pension and am not even trying to get into the UK against Cyprus debate!!
Re: POUND DOING WELL
Posted: Sun Feb 25, 2018 11:50 pm
by Varky
Poppy wrote: ↑Sun Feb 25, 2018 10:16 pm
Lincoln quite clearly stated that if he lived in the UK he would be paying tax at source on his UK pension. I am just clarifying that he would not pay tax on a basic state pension and am not even trying to get into the UK against Cyprus debate!!
Yes, being pedantic that is what he actually posted, but we are not in court, so give people a bit of slack. I knew what he was saying.
Re: POUND DOING WELL
Posted: Mon Feb 26, 2018 8:24 am
by Poppy
Well Varky it is strange that you knew what Lincoln was saying but did not know what I was saying as you inferred I was trying to get into the UK v Cyprus debate which as I have already said was not my intention at all. However I must point out that those people who may be thinking of returning to the UK need to know the facts as far as anyone of us can help them and by inferring that people will pay tax on a basic state pension is false and not
helping them at all. When we decided to return after 10 years in Cyprus and only 1 visit to the UK in all that time our main concern was how we would manage financially and any advice we received was most welcome.
Re: POUND DOING WELL
Posted: Mon Feb 26, 2018 4:43 pm
by Poppy
Nice one Lincoln but I have to say that if your pension is that good in pound sterling then you must be close to paying tax on it in Cyprus!
Re: POUND DOING WELL
Posted: Mon Feb 26, 2018 6:07 pm
by Rita Sherry
Poppy
I understand where both you and Lincoln are coming from but Varky has it as near as damm it correct. To be precise the UK state Pension is tax free no matter where you live. However if you have additional income from any other source i.e. occupational pensions etc then the whole income (including State Pension) is taken into account for assessment purposes despite the fact that that income (excluding State Pension) often overlooked has already been subject to tax before retirement. I most certainly benefit from the Cypriot system as I am sure do many others in the same position as myself but it was not a reason for coming to live in Cyprus. Oh and incidentally I pay Cypriot Tax because I do not fall into the no tax bracket and am taxed on all my UK income. In the event anyone should suggest I am lucky (and others who did the same as myself) the answer is no I/we am not I worked dammed hard and saved for my retirement being the prudent sole I was brought up to be and now often wonder why.
Rita
Re: POUND DOING WELL
Posted: Mon Feb 26, 2018 6:23 pm
by Mrblobby
Well done Lincoln mentioning SERPS , most people say the uk state pension is the lowest in the world , but with SERPS which most people were in or else contracted out which also added a lot . The weekly amount can be about £260 .
Re: POUND DOING WELL
Posted: Mon Feb 26, 2018 6:24 pm
by Varky
Poppy
Please let's not hijack this thread to go on about the pros and cons of living in Cyprus
That was not specifically addressed at you but a general request.
Also Lincoln did not refer to a 'basic' state pension. You added that
Re: POUND DOING WELL
Posted: Mon Feb 26, 2018 7:14 pm
by Jimgward
Rita Sherry wrote: ↑Mon Feb 26, 2018 6:07 pm
Poppy
I understand where both you and Lincoln are coming from but Varky has it as near as damm it correct. To be precise the UK state Pension is tax free no matter where you live. However if you have additional income from any other source i.e. occupational pensions etc then the whole income (including State Pension) is taken into account for assessment purposes despite the fact that that income (excluding State Pension) often overlooked has already been subject to tax before retirement. I most certainly benefit from the Cypriot system as I am sure do many others in the same position as myself but it was not a reason for coming to live in Cyprus. Oh and incidentally I pay Cypriot Tax because I do not fall into the no tax bracket and am taxed on all my UK income. In the event anyone should suggest I am lucky (and others who did the same as myself) the answer is no I/we am not I worked dammed hard and saved for my retirement being the prudent sole I was brought up to be and now often wonder why.
Rita
UK private pension contributions, both employee and employers, are and have been tax free.
Re: POUND DOING WELL
Posted: Mon Feb 26, 2018 8:40 pm
by Rita Sherry
Jimgward wrote: ↑Mon Feb 26, 2018 7:14 pm
Rita Sherry wrote: ↑Mon Feb 26, 2018 6:07 pm
Poppy
I understand where both you and Lincoln are coming from but Varky has it as near as damm it correct. To be precise the UK state Pension is tax free no matter where you live. However if you have additional income from any other source i.e. occupational pensions etc then the whole income (including State Pension) is taken into account for assessment purposes despite the fact that that income (excluding State Pension) often overlooked has already been subject to tax before retirement. I most certainly benefit from the Cypriot system as I am sure do many others in the same position as myself but it was not a reason for coming to live in Cyprus. Oh and incidentally I pay Cypriot Tax because I do not fall into the no tax bracket and am taxed on all my UK income. In the event anyone should suggest I am lucky (and others who did the same as myself) the answer is no I/we am not I worked dammed hard and saved for my retirement being the prudent sole I was brought up to be and now often wonder why.
Rita
UK private pension contributions, both employee and employers, are and have been tax free.
Jim
I am/was referring to pension income not contributions i.e. for tax purposes all income, including that from State Pension income, is included for the purpose of assessment and tax obligations, after the personal allowance has been deducted. I personally paid additional voluntary contributions up to the limit allowed by the Inland Revenue i.e. 9% to enhance my pension as did many others. My employer most certainly did not make any contribution to that figure. You might also recall that one of the first decisions George Brown made on appointment as Chancellor of the Exchequer was to raid the pension funds causing many companies to terminate the final salary schemes. The two certainties in life are death and taxes over which we have little or no control.
Rita
Re: POUND DOING WELL
Posted: Tue Feb 27, 2018 1:08 am
by Jimgward
Rita
Your figures aren’t correct. Up until about 6 or 7 years ago, you could pretty much pay any amount into a pension scheme, tax free. Not 9%. The total figure now is around £50k per annum, not a %.
The pension paid, is obviously, like any income subject to tax within whatever regime you live
Re: POUND DOING WELL
Posted: Tue Feb 27, 2018 5:26 pm
by tonee
Hi What worries me, is after Brexit what is there to stop the government of the day taking away the annual inflation rise for pensioners living abroad,as is the case with numerous Commenwealth countries.
Re: POUND DOING WELL
Posted: Tue Feb 27, 2018 5:57 pm
by trevnhil
I don't think the government have taken away the pension rise for some commonwealth counties. I don't think they ever had the yearly rise..
Re: POUND DOING WELL
Posted: Tue Feb 27, 2018 7:50 pm
by Mrblobby
I don't think commonwealth comes into it . Cyprus is an eu country as France and Spain and I do not think pension rises will be stopped because of Brexit .
Re: POUND DOING WELL
Posted: Tue Feb 27, 2018 8:06 pm
by Rita Sherry
Jimgward wrote: ↑Tue Feb 27, 2018 1:08 am
Rita
Your figures aren’t correct. Up until about 6 or 7 years ago, you could pretty much pay any amount into a pension scheme, tax free. Not 9%. The total figure now is around £50k per annum, not a %.
The pension paid, is obviously, like any income subject to tax within whatever regime you live
Jim
I can assure you I and my colleagues' AVC's (Additional Voluntary Contributions) were restricted to 9% in accordance with Inland Revenue conditions and I still have the documentation to show that was so. I am, of course, talking about a pension scheme already in place to which we were allowed to make such AVCs up to the limit of 9%. I paid the maximum permitted and in the light of personal circumstances was/am very pleased I did so. By the way I retired in 1997.
Rita
Re: POUND DOING WELL
Posted: Wed Feb 28, 2018 9:48 am
by Jimgward
Rita
Sorry, I was talking of more recently, you are correct AAVCs were restricted
Re: POUND DOING WELL
Posted: Wed Feb 28, 2018 10:09 am
by Rita Sherry
Jimgward wrote: ↑Wed Feb 28, 2018 9:48 am
Rita
Sorry, I was talking of more recently, you are correct AAVCs were restricted
Jim thats o.k you were not to know how ancient I am becoming
I should have made it clearer which era I was talking about.
Rita