www.iva.co.uk

Hi all,
Although at present I am going through the process of presenting a full and final offer I have thought of another issue that will possibly complicate my situation.
I moved to Spain in Oct 2020 and so this year I’ve had to do a tax return for the first full tax year (Jan-Dec 2021) that I’ve lived here. Up until now I have been paying tax, on a company pension I receive, in the UK.
As I’m now considered a tax resident of Spain I will get a tax bill for last year and I should receive a tax rebate from the UK so that I’m not double taxed on my pension.
When I receive a tax rebate from the UK it’s usually expected that it is given over to my IVA however as I will have to pay my tax bill here in Spain would I be expected to handover any monies I get back from the UK? I would also add that my tax bill in Spain will be slightly higher than the rebate of taxes from the UK.

You will need to discuss this with your IP. I assume that the tax bill in Spain will be regarded as an essential outgoing and be allowed against your income. I would further argue that the rebate from HMRC is not a windfall, as it is to be, effectively, passed to the Spanish Tax Authorities instead.

Thanks Foggy, I was thinking the same as one way or another I’m having to pay taxes! It’s not something that I can decide not to do. I’ll speak with my IP