I have a client who is resident in Spain and the Spanish authorites now want to tax UK private pension for 2016-17. It was a one-off triviality payment of £8,446 and emergency tax was taken here. If Spain tax this income that was received in Febuary 2017, I'm out of time to amend teh 2016-17 tax return and so the taxpayer could pay double tax on this income.
Also, the Spanish authorities are giving the taxpayer 10 days to pay up and, if they are proved wrong, apprantly they issue an IOU (with no end date) rather than a refund.
Has anyone else come across this? Worst case is Spain tax the pension so is there anything in the legislation to extend the amendment window to claim the deduction of tax paid in Spain.
They also want to tax the Teachers Pension but I think this is excluded in the DTA and taxed here.