UK Pension - Irish tax implications.

[dave2015]

Hi
A family member receives a small pension (55gbp per week) from Northern Ireland in addition to her old age pension. She has never done anything additional in regard to tax, is there a possible tax implication?
Husband also has a work pension and they are assessed jointly
Thanks

 

[jpd]

Presuming that they live here, then the UK pension is taxable in Ireland.

£55 per week is about € 3,300 pa annum

This should be included in their total income and tax would be due at their marginal rate, whatever that is.

Without further details of their total income, it is impossible to say how much tax would be due - at 0% none, at 20% € 660, at 40% € 1,200

 

[dave2015]

Presuming that they live here, then the UK pension is taxable in Ireland.

£55 per week is about € 3,300 pa annum

This should be included in their total income and tax would be due at their marginal rate, whatever that is.

Without further details of their total income, it is impossible to say how much tax would be due - at 0% none, at 20% € 660, at 40% € 1,200

Thanks. How many years is she bound to go back in calculating/declaring. I think she’s been getting it 7/8 years.

 

[jpd]

Revenue can go back as far as they want in case of tax evasion, I don't think there is a limit

They could make a Qualifying disclosure, which could reduce any penalties and interest charges - have a look at the 3rd section here

Making a disclosure

Information about prompted and unprompted disclosures. Introduction to disclosure for foreign income and assets.

www.revenue.ie

 

[Baby boomer]

It might be worthwhile looking at the over-65 tax exemption limits - €18k for separate assessment and €36k for jointly assessed couples. No tax is payable on incomes below these levels, with marginal relief if you're just over.

If she were separately assessed, she's in the clear as no tax would be payable on the OAP of 12.5k plus the NI pension of 3.3k.

For joint assessment, it depends on whether the husband's income pushes the combined total over €36k and by how much.

Exemption limits

This page explains exemption limits on certain taxes.

www.revenue.ie