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Thread: UK to end pensions for overseas spouses

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    Moderator fred's Avatar
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    UK to end pensions for overseas spouses

    The Government wants to save money by stopping spouses' pensions being paid to non-UK citizens.

    https://www.lovemoney.com/news/20919...erseas-spouses


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    There's a lot of similar changes in the pipeline as consulations. Let's wait for the detail. But it's not difficult to imagine what's coming.
    Yep, hit those who paid the money into the pot and now have no defence and allow the richest to continue to screw the system and make billions.
    How nice


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    Moderator Arthur Little's Avatar
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    Quote Originally Posted by Terpe View Post
    There's a lot of similar changes in the pipeline as consulations. Let's wait for the detail. But it's not difficult to imagine what's coming.
    Yep, hit those who paid the money into the pot and now have no defence and allow the richest to continue to screw the system and make billions.
    How nice
    ................................... ... we have to wait and see. Typical Government ... clobber the easiest target(s)!!!


  4. #4
    Respected Member Longweekend's Avatar
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    What exactly is a non UK citizen?


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    Moderator Arthur Little's Avatar
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    Quote Originally Posted by Longweekend View Post
    What exactly is a non UK citizen?
    Hmm ... !

    ALL
    I can deduce from reading the author of that article's statement is ... ... it's someone living in who was neither born here, nor - at any time during his/her period of residence - become naturalised as a British citizen.


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    Respected Member Michael Parnham's Avatar
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    Quote Originally Posted by Longweekend View Post
    What exactly is a non UK citizen?
    Exactly what it says, someone living in the UK from another country who has no British Citizenship documentation, eg ILR, having said that I don't really understand myself how a Visa holder who has worked for many years and paid into the system will be affected


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    Respected Member Longweekend's Avatar
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    Exactly if a non UK resident is not entitled to a UK pension, so what?...


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    Moderator fred's Avatar
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    Quote Originally Posted by Terpe View Post
    There's a lot of similar changes in the pipeline as consulations. Let's wait for the detail. But it's not difficult to imagine what's coming.
    Yep, hit those who paid the money into the pot and now have no defence and allow the richest to continue to screw the system and make billions.
    How nice
    The Aussies have had quite a few pension rule changes over the last few years for guys that have worked all their lives in Australia and have chosen to live overseas..I dont know all the details but I have older friends here that have to go back to Aus at least once a year to avoid large pension reductions..

    Here`s how they make things tricky for men and women that have worked and paid in all their lives to just pack their bags,up and leave..

    To qualify for an Age pension you must also have been an Australian resident for a total of 10 years, at least five of these in one continuous period.
    As mentioned, you need to be a resident of Australia at the time the first claim for the age pension. Note that if you have been an expatriate ("former resident") and have been living overseas, the restriction for former residents means that you need to remain in Australia for two years before you can leave and be paid overseas.
    For example, if you have lived in Australia for 10 years between the ages of 16 and age pension age, your proportion would be 10/25 multiplied by the normal income and asset tested rate of Age Pension.
    Previously, this rate change did not occur untiil a pensioner had been outside Australia for 26 weeks. However, in the 2015 Budget the Government announced that some pensioners will now have their pension rate reduced if they are absent from Australia for more than 6 weeks.
    http://www.ozexpats.com/content/aust...nsion-overseas

    Many Aussies are more than a bit pissed off with it all.


    Actually,I am pleasantly surprised that the UK has not adopted any of these measures or hoops to jump through...YET!
    As you already know ,my opinions on the ridiculous UK debt situation and the ability for the country to honour their huge commitments to us (pensions) long into the future.
    It may be of little surprise to you and others that I believe that they will have to one day restructure.
    Perhaps this latest news is just the thin end of the wedge?
    Who knows?
    All I know is that I dont trust them!


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    Moderator Arthur Little's Avatar
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    Quote Originally Posted by Michael Parnham View Post
    Exactly what it says, someone living in the UK from another country who has no British Citizenship documentation, eg ILR, having said that I don't really understand myself how a Visa holder who has worked for many years and paid into the system will be affected
    ... ILR/Indefinite Leave to Remain - as the term implies - simply permits a foreigner to live here without a time limit ... albeit, of course, it's revocable in the event of he/she returning to *live abroad. (Unsure of for *how long!)

    Citizenship, in contrast, is [generally] only revoked if the holder is convicted of a serious offence ... or becomes otherwise ineffective through [voluntary] renunciation.

    's certainly my understanding of the situation.
    Last edited by Arthur Little; 28th January 2016 at 20:31.


  10. #10
    Respected Member Michael Parnham's Avatar
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    Quote Originally Posted by Longweekend View Post
    Exactly if a non UK resident is not entitled to a UK pension, so what?...
    Exactly.....


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    Moderator fred's Avatar
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    Quote Originally Posted by Michael Parnham View Post
    Exactly.....
    Everything will be fine.


  12. #12
    Respected Member Longweekend's Avatar
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    Good, that's all sorted out then....


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    Respected Member Ako Si Jamie's Avatar
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    Have they stopped paying child support to people living in Poland yet?


  14. #14
    Respected Member Longweekend's Avatar
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    That's an EU rule...


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    Trusted Member jake's Avatar
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    Quote Originally Posted by Longweekend View Post
    Exactly if a non UK resident is not entitled to a UK pension, so what?...
    If they have payed into the system that is compulsory, why shouldn't they be entitled?
    Not everyone chooses to become a citizen of the country they have worked in for a longtime.


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    Trusted Member jake's Avatar
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    Quote Originally Posted by fred View Post
    The Aussies have had quite a few pension rule changes over the last few years for guys that have worked all their lives in Australia and have chosen to live overseas..I dont know all the details but I have older friends here that have to go back to Aus at least once a year to avoid large pension reductions..
    I had a few schonners with an Ozzie mate earlier and he has to report back every 6 months to receive his pension. All he has to do is go through immigration and it automatically registers him in the country. He can then leave on the next flight out of the country.
    For selfish reasons i wish it was every 3 months, as my stocks of Australian made barbecue sauce tend run low!


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    Just read the article. Of course my dependent wife, has never paid into the UK system, but then it is not she who is claiming the additional pension but me, and I like most others, paid in all my working life, and still pay income tax in UK on my Government pension. Of course I don'`t get a vote there to say how my taxes should be spent.

    When I die my wife gets I believe a last payment and then nothing.

    Maybe we should all go to live in UK. We would then get the heating allowance and possible other bits and pieces and when I die if my wife does not have enough to live on the Gov will keep her. If we all did that the pittance which we now get as our dependents allowance would shrink into insignificance.


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    Moderator Arthur Little's Avatar
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    having to say this, given your circumstances, John. But then, of course ... ... it has to be said, nonetheless.

    Maybe ... in view of the sheer number of British OAPs flocking to Spain for 6 months - purportedly to escape our harsh winters - albeit, quite possibly, (though I don't know for sure!) to pay lower tax. Which, in the event of the *latter (IF indeed, *IT turns out to be one of the reasons) ... then obviously our Government deems it necessary to recoup the resultant lost revenue from some source.

    Let me stress again, with not being one of those pensioners myself,
    I wouldn't know for certain.

    However, what I do know - without a doubt - is that millionaire film stars, such as Sean Connery, choose to live in the likes of Marbella for precisely the alternative reason I've put forward.

    's unfair and, IMO, simply not on!


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    Sorry Arthur, the tax in Spain is quite a bit higher than in UK. Tax free allowance in UK is £10,600 in Spain it is around £5,000.

    The UK Gov is not losing anything (apart from possibly all or some of the pensions are not being spent in UK). Pensioners in UK are able to claim more allowances than those who have chosen to live in Spain .

    And according to Google, so to quote you, without a doubt, Sir Sean Connery actually does not live in Spain but in the Bahamas, which unlike Spain, is a tax haven.


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    Moderator Arthur Little's Avatar
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    Quote Originally Posted by johncar54 View Post
    Sorry Arthur, the tax in Spain is quite a bit higher than in UK. Tax free allowance in UK is £10,600 in Spain it is around £5,000.

    The UK Gov is not losing anything (apart from possibly all or some of the pensions are not being spent in UK). Pensioners in UK are able to claim more allowances than those who have chosen to live in Spain.
    Points taken ... you're living in Spain, after all.

    Quote Originally Posted by johncar54 View Post
    ;And according to Google, so to quote you, without a doubt, Sir Sean Connery actually does not live in Spain but in the Bahamas, which unlike Spain, is a tax haven.
    Perhaps now. But the following link to his biography indicates he did, in fact, reside in Marbella from 1974 as ... [I quote] a "tax exile", until selling up in 1991 and moving to the Bahamas.

    www.biography.com/people/sean-connery-9255144:

    Tax "avoidance", by celebrities in his "bracket" seems, therefore, to be commonplace.


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    until selling up in 1991

    Fred, hardly a reasonable comparison now, i.e. that was 25 years ago. Lots of things have changed since then. Including being able avoid / evade taxes.

    In Spain if one has assets totally 50,000 euros, that are located outside Spain they must be declared, with an up date every year. Failure to do is a minimum fine of 10,000 euros up to a fine of 150% of the assets not declared plus interest. A Spaniard was recently made to pay 460,000 euros because he failed to declare 350,000 euros in Switzerland.

    Also if one is tax resident (living) in Spain then they must pay tax on any properties additional to their main home, owned anywhere in the world. We pay Spanish tax on my wife's house in Philippines.

    If one has assets worldwide over 1 million euros there is also a wealth tax which must be paid

    Also inheritance taxes, even between spouses, can be astronomical.

    Tax haven it is not !


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    Moderator Arthur Little's Avatar
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    Quote Originally Posted by Arthur Little View Post

    Perhaps now. But the following link to his biography indicates he did, in fact, reside in Marbella from 1974 as ... [I quote] a "tax exile", until selling up in 1991 and moving to the Bahamas.

    www.biography.com/people/sean-connery-9255144:
    Quote Originally Posted by johncar54 View Post
    until selling up in 1991

    Fred, hardly a reasonable comparison now, i.e. that was 25 years ago. Lots of things have changed since then. Including being able avoid / evade taxes.
    ........ may be so, John. But, ... I would imagine you meant Arthur here, instead of Fred.


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    Moderator fred's Avatar
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    Quote Originally Posted by Arthur Little View Post
    ........ may be so, John. But, ... I would imagine you meant Arthur here, instead of Fred.

    Yes John..Stop putting words in my mouth!


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    Quote Originally Posted by Arthur Little View Post
    ........ may be so, John. But, ... I would imagine you meant Arthur here, instead of Fred.
    Error accepted Fred, but Arthur 'if the cap fits' (you are wearing the Hat ! )


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    The original posted link was from 2013

    The 2014 consulation was done and dusted and nothing happened.
    Why?

    Personally I don't know.
    But since my wife is a British citizen she still be able to claim my NI contributions


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