tax credit on UK govt pension

[fittersmate]

Have received our Avis but cannot understand why the tax credit for Govt Pension taxed in UK has decreased by quite a large amount this year compared to previous years. Just wanted to know if there is a simple answer to this before going along to the tax office and asking them.

Many thanks.

[Gardian]

It’s impossible for anybody on here to say without knowing the numbers.

However, given that (as with most of us) the figures won’t have changed by much since last year, then there are only two realistic possibilities.

Either you declared the numbers in the ‘wrong box’ or the Impots got their calculation wrong.

The former is the more likely and 20 mins with your local friendly Impots bod will doubtless sort it out.

[fittersmate]

Thanks. Will go to tax office.

[cajal]

I am not in receipt of a Govt Pension so I'm only hazarding a guess here.

The £/€ exchange rate of 2017 was considerably less than the £/€ exchange rate of 2016. Bearing this in mind, I assume you received a simmilar £ rate Govt Pension in 2016 and 2017 and, on conversion to € rates for Impot declaration the 2017 € amount would be less than the 2016 € amount, due to the exchange rate.

This could be a possible  reason for the lesser credit d'Impot in 2017 as I would imagine the credit to be based on a percentage of the value of your declared € pension.

[fittersmate]

Thank you cajal. I suspected it might be something like that. Some time ago I did see some figures (from Parsnip) on another forum which explained how it is worked out. Will try and find it. Once again thanks.

[pomme]

Have you looked at the notes 13 and 14 on page 3 of form 1533-TIP-N-K which came with your tax avis? These are the notes concerning the foreign income.

Mine is also significantly different from last year but I had some changed circumstances

However I do not understand how the tax is calculated! The only way is either a visit to the tax office or working through the calculator in BrochureIR2018.pdf starting p314