Tax on Foreign Pensions

[PM9999]

Hi

We are newly arrived (and tax resident) in Ireland as of 1/1/15. I receive a couple of small UK occupational annuities which I am aware are taxable in Ireland. My wife receives 2 UK government occupational pensions (one is local authority, the other National Health Service). As she is not an Irish national, I am aware that, per the UK/Ireland DTA, these are fully taxable in the UK only. She also receives a small amount of UK bank interest, untaxed in the UK, and I know this has to be declared and taxed in Ireland. 2 questions: do her UK government pensions need to appear anywhere on Form 11, or are they simply ignored for the Irish tax return? Also, is it possible for me under these circumstances to apply the married allowance of €3300 against my earnings, or am I restricted just to €1650 single allowance?

Paul

 

[Marc]

Hi Paul,

Welcome to Ireland and to askaboutmoney
This is a relatively complex question.

Are you moving permanently to Ireland do you still consider the UK to be home with an intention to return?

Also are you both UK nationals with British passports?

 

[PM9999]

Hi Marc

Thanks for your reply.

We will be permanently in Ireland. We have no assets in the UK, and no intention to return there. (In fact, we moved to Ireland after living, as tax residents, the previous 10 years in Greece. Our UK ties are long gone, and the UK Revenue has not considered us resident there for the past 11 years). We have no residual assets or anything to tie us to Greece, and the Greek tax authorities now regard us as no longer resident there (from January 2015). They required confirmation from the Irish Revenue that we would be resident here from 1/1/15, which they have received. In a nutshell, the UK, Greek and Irish revenue systems all consider us to be tax resident here in Ireland from 1/1/15.

We are UK nationals by birth, have UK passports and have no intention of taking out Irish citizenship/passports. (If we did, I believe that my wife's UK government pension would then become taxable in Ireland as an Irish citizen).

The DTA between Ireland/UK seems pretty clear that my wife's pension is taxable only in the UK. I'm trying to understand the mechanics of form 11 (after looking at last year's) as to whether it is declared initially, and then credited further down the form, or whether we simply ignore it altogether. However it is treated in a practical sense, I'm confident it won't be taxed in Ireland.

Of greater interest is whether I can manage to claim the married allowance under these circumstances and how this can be accomplished. If it is possible, will it be automatic or do we need to make some kind of declaration/election to the Irish Revenue?

Paul