Expat pensioners take UK government to court
The UK government is being taken to court by a group of British pensioners living overseas because of the differing levels of state pension received depending on which country in which you reside. Many people may not be aware that even if you leave the UK after your retirement you are still entitled to receive the state pension in whichever country you move too. However, it appears that the level of income received will depend upon when you left the UK and to which country you moved.
Those who moved to within the European economic area, Switzerland, the US, Jersey and Jamaica will receive an inflation-adjusted pension until they die. However, UK pensioners who moved to countries such as Australia and South Africa, which do not have reciprocal agreements with the UK authorities, will only receive a pension which was fixed at the time they left the UK. So despite the fact they will have paid in the same level of income tax as those who have moved overseas to countries with reciprocal agreements, their income will reduce significantly over time in real terms.
It is estimated that the court case could impact upon the payment of over 500,000 pensions to former UK residents who have now moved overseas. Potentially it could be a very costly exercise for the UK government if the case is proven.
Share this..
Related stories
British Retail Consortium reveals disappointing figures
Growth in retail sales in the UK slowed to 0.5% during July with a number of big ticket items being hit particularly hard. This reduction in retail sales growth is a major concern to the industry at a time when the UK government has introduced major budget reductions and increased taxes across the board. Against this backdrop, something highlighted by the likes of Next and Carpetright last week, i...
Read MoreIs the UK at risk of Japanese style deflation?
Adam Posen, a member of the Bank of England's MPC, has today warned UK investors of the potential risk of a Japanese style deflationary period in the UK. This warning is ever more important because this particular member of the MPC was brought on board because of his knowledge of the Japanese economy and the troubles which that area has encountered over the years. He cited a number of parallels...
Read MoreSkipton Building Society activates mortgage release clause
The Skipton Building Society has sent shockwaves through the mortgage industry with the revelation that the group will trigger an "exceptional circumstances" get out clause written into the customer mortgage deals sealed since 2002. Despite the fact that the Skipton Building Society never actually defined "exceptional circumstances" it has cited the exceptionally low Bank of England base rate as a...
Read MoreNorthern Rock review rules out prosecutions
There is "insufficient" evidence to begin legal proceedings against ex-Northern Rock executives, a review at the bank has found.The lender also said that it had paid off over half of the government loan, as it winds down its mortgage book.Northern Rock's business plan, developed under former chief executive Adam Applegarth, depended heavily on raising money from other banks in order to grow and fi...
Read MoreHas the fall in commercial property gone too far?
John Caudwell, the billionaire founder of Phones4U, has today revealed he is moving into commercial property in a big way. The leading light in the mobile phone industry believes that the fall in commercial property values has gone too far and sees good value on a medium to long-term basis. Many experts in the sector believe this is a possible sign that the market could be bottoming out and we cou...
Read More