UPP for UK SP

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JO ODDIE

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Jan 21, 2021, 3:18:07 PMJan 21
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> Hallo everyone
>
> I think I remember reading somewhere here that someone was claiming UPP from the Australian tax office on his UK State Pension.
>
> If this is so, could anyone advise how to make a claim please? I’m wondering if I need to get some sort of official details from the UK Pension Centre, & what these details need to say.
>
> Thank you to all those coming up with ideas to carry forward the campaign to unfreeze our UK SPs. I wish I could contribute some useful ideas.
>
> Kind regards
>
> Jo


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John

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Jan 21, 2021, 7:31:48 PMJan 21
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Hi Jo,
You have to include 92% of your UK pension as part of your Australian income and pay tax on the
figure that you arrive at. I don’t think that you need to get any documents from the UK
Pension centre. I had an advice from the Australian Tax office saying that I am allowed
to claim 8% of the total pension received as a deduction. May be you can get confirmation from others
who are also claiming the 8% deduction

John
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JO ODDIE

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Jan 21, 2021, 8:40:56 PMJan 21
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Hallo John

Thank you so much for your reply. It arrived just as we were going into our accountant.

I showed her your email & she immediately amended my husbands tax return (which had been delayed awaiting input from ATO.)

Many, many thanks.

Michael Skully

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Jan 21, 2021, 11:52:45 PMJan 21
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Taxation of British pensions in Australia

If you received a pension from the United Kingdom State Pension (previously known as the British National Insurance Scheme), you may be entitled to a UPP deduction.

For a category A pension or a category B widow's pension, you can calculate your deduction by multiplying your UK State Pension (in Australian dollars) by 8%. If you want your UPP calculated using the Exact method, you will need to write to us and request a private binding ruling.

If you received a category C or D pension you are not entitled to a deductible amount of the UPP.

https://www.ato.gov.au/Individuals/myTax/2020/In-detail/Foreign-pensions-and-annuities/#Britishpensions


Categories of British State Pensions

The categories of contributory SP available are:

  • Cat A - category A pensions, comprising basic and additional pensions, are paid to individuals based upon their qualifying NI contributions. In certain circumstances, spouses and civil partners were able to inherit these when the principal recipient died.
  • Cat B - category B pensions, comprising basic and additional pensions, are paid to the surviving spouses and civil partners of deceased category A recipients where the survivor is not entitled to category A pension.
  • Cat ABL - category ABL pensions are paid to married persons and civil partners when a person’s own category A basic pension is less than the maximum amount payable and they are able to ‘top up’ using their spouse or civil partner’s NI contributions.
  • Cat BL - category BL pensions are paid when a person has no category A basic pension entitlement but can claim an SP using their spouse or civil partner’s NI contributions.
  • Cat AB - category AB pensions are paid when a person’s own category A basic or additional pension is less than the maximum amount payable and they are able to ‘top up’ using their deceased spouse or civil partner’s NI contributions.
  • GRB only

The categories of non-contributory SP are:

  • Cat C - category C pensions are payable to people over SPa on 5th July 1948 and their widows – the only remaining entitlements are payable to widows.
  • Cat D - category D pensions are awarded to people who:
    • reach 80 years of age
    • satisfy certain residency conditions and
      • failed to qualify for category A or B pension or
      • receive less by way of basic pension than the rate of Category D pension.


Marcus Wigan

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Jan 21, 2021, 11:53:25 PMJan 21
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this is correct
> To view this discussion on the web visit https://groups.google.com/d/msgid/bapanews/003a01d6f055%24f70bcb40%24e52361c0%24%40com.au.

Sheila Whyte

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Jan 21, 2021, 11:54:00 PMJan 21
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Dear Jo,
I have several pensions, including UK State pensionI have to declare them all here  in Oz as 'worldwide income'.
My tax rep simply claims 8% deduction on all pensions under UPP rule; am not sure what the initials stand for, but tax agents know.

If you do your own tax, then it should be simple to apply for the 8% UPP deduction (as my tax rep does on my behalf when he does my annual tax return) - and NO, I have never had to get any papers from UK in order to do this. They are well informed of this deduction available to pensions from overseas.
Good luck
Sheila Whyte. PS I DO find the cost of an Income Tax rep. very worthwhile and good value.; they charge me approx $120 per annum to prepare my tax return  annually in July.
I am with a firm in NSW called H&R Block Tax Accountants; am sure they will be in other states too. 

Sheila Lean

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Jan 21, 2021, 11:54:25 PMJan 21
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I worked in several European countries an my tax accountant has always factored in UPP when declaring my pensions. 

I worked in several European countries and UPP amount varies from country to country but only applies to State pensions not private or company pensions. 

Information easily accessible on ATO Website. 



JO ODDIE

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Jan 22, 2021, 12:22:07 AMJan 22
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Thank you everyone for your responses regarding UPP for UK SPs which are much appreciated.

Michael, thank you for your full explanation of UK SPs. I had no idea that all these categories of pensions existed. I am much wiser now!

Thank you again everyone for taking the time to enlighten me. 

Kind regards 

Jo





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On 22 Jan 2021, at 15:54, Sheila Lean <sheil...@gmail.com> wrote:


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