Declare Civil Service Pension

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Q.

REGARDING your response of May 14, 2015 about whether UK Civil Service/Armed Forces are declared for tax year 2014 or 2015. My Spanish accountant in Torrevieja informed me that my Army pension must be declared this year for the tax year 2014. This is the opposite of your advice. She informed me that she had been in direct contact with the tax office and they told her that UK Civil Service pensions must be included for the tax year 2014. I would be very grateful if you could re-clarify the situation and also advise me of the BOE where this ruling can be found.

G.P. (Costa Blanca)

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A.

This whole thing is driving me crazy. My lawyers interpret the Treaty, Article 28, to mean what I said in my EWN column, declare next year for 2015.
However, the Tax Agency has told several tax advisors in several areas of Spain that the government service pensions paid in 2014 must be declared now. My advice is that, if your tax consultant has been told to declare the pension, then do so. The main treaty did not go into effect for any purpose at all until June of 2014, so declaring for the whole year makes it retroactive for six months, which simply is not on.
The Tax Agency replies that they are not taxing you, really. Rather than fight it, just declare. The UK-Spain Treaty is published in Spain’s official State Bulletin, the BOE, of May 15, 2014.


1 COMMENT

  1. Since March 2015 I have been very actively enquiring into this matter of public service pensions to be declared in Spain from 1st January 2015 -meaning that those involved should already be collecting their information across 2 UK tax years to satisfy the Spanish taxation declaration for 2015 – due 30 June 2016. I had no help at all from all the agencies which should know and be able to give guidance, until my questions eventually received a very good reply from HM Treasury HMRC liaison dept a few days ago. I can make this available as it sure does give the correct interpretation. However, It does not say whether the gross or net crown pension receipt should be declared, nor what exchange rate will be used, and it does look like even non residents with interests in Spain (like property) who also make Spanish tax returns may also become involved in this change, which Spain has always been able to invoke in its national taxation law, but refrained from doing so until onset at 1st January 2015. Do not be persuaded of any other start date, by anyone. If in doubt get in touch with HM Treasury HMRC liasion Dept.

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