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A husband and wife, both non-resident, each have retirement annuities. Their total UK incomes are such that the provisions of FA 1995, s 128 apply and the tax each year on the retirement annuities is restricted to the tax deducted at source, currently 22%. With PAYE being applied to retirement annuities from next 5 April, what codes should be operated next year?
A husband and wife both non-resident each have retirement annuities. Their total UK incomes are such that the provisions of FA 1995 s 128 apply and the tax each year on the retirement annuities is restricted to the tax deducted at source currently 22%. With PAYE being applied to retirement annuities from next 5 April what codes should be operated next year?
HMRC have confirmed ('Retirement Annuities paid to Non-Residents — FAQs — 23') that retirement annuities remain excluded income for FA 1995 s 128 purposes. Logic suggests that the codes should be BR so that tax continues to be deducted at basic rate (22%) thus maintaining the status quo. But could an 'NT' code be requested so that tax deducted is nil meaning that under the provisions of s 128 no further tax is due? This result would be similar to banks...
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