18 Oct 2007 7:48 PM:

So it looks like everyone will be better off taxed in the UK. I still think it's a rip off. If your state pension isn't taxable it shouldn't be counted in your allowances.


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18 Oct 2007 4:18 PM:

The UK tax allowance of £7550 is applicable only if you have no state pension - as I found out to my disgust. If - like me - you have a state pension of £5000 a year, then this amount is deducted from your personal allowance. So in my case everything I get over £2550 is taxed up to the hilt. You will have to do the sums again, it may be more cost effective to be taxed in Spain after all.


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