Renta 2023 - 2024

[oldbaz95]

Just had a quick look at the list of casillas (boxes), and could not find 525 or 0525 for Crown Pensions. Has anyone found a different box in the current declaration?

[Free at Last]

I did mine a few days ago. There is a box 0525 for renta exenta, it comes under the heading of Datos adicionales para calcular el impuesto.

[oldbaz95]

Great thanks!

[peteroldracer]

Has anyone else found that their tax bill is lower than 2022? I double - nay treble checked my figures, but once they are in, in the right boxes you just have to trust the system! Mine actually shows I should be refunded a few cents.

[El Cid]

The exchange rate is lower, so all things being equal, your income has dropped so your tax will be less.

Sid

[peteroldracer]

Sorry Sid, but both our incomes (all 3 if you count the Crown one separately) are higher in Euros than last year. All the deductions and allowances seem to have gone up: e.g Box 0022 for 2022 was 6774, this year is 7316. I have no idea what any of the categories mean, all I do is put state pension in 103, interest in 0026, and Crown pension in 0525 then hit submit!
The most frustrating thing about the website is that sometimes I click on the Digital Certificate identifier choice and simply nothing happens for ages, other times the box with our certificates comes up virtually instantly - maybe the site gets overwhelmed?

[El Cid]

The difference between the 2 exchange rates is 2%, so if your € incomes have gone up, it must be by more than 2%. The increase in the state pension accounts for that.

There is an extra allowance for incomes below about 16K. Its on a sliding scale and as your income is now more, it would decrease- The actual allowance is in box 0023. The whole thing gets more complicated when you take into account the exempt pension.

I cannot see any reason why, with an increase of over 2%, even allowing for the exchange rate, that the tax would go down. Maybe you got it wrong last year.

Sid

[Free at Last]

Well my tax bill certainly hasn't gone down, but 2023 was the first year I had my state pension for a full year, I only got it for half of 2022 so obviously my income was higher plus the pension increases were quite high (I got a 13.84% increase in my biggest pension from a former employer's scheme which is unfortunately not a Crown Pension so is taxable in Spain. They base our annual increase on UK RPI in February, not on CPI for September of the previous year). I only get the €6,700 minimo personal plus the €2,000 deduction for general expenses, don't qualify for any of the low income allowance since starting to get my state pension.

[peteroldracer]

Slightly worrying - although I have little understanding of what everything on the form means, it seems difficult for me to actually do anything wrong? There are two figures to enter on my form, three on my OH’s. My UK State pension is paid here in Euros, a small private pension paid into a UK bank in pounds (so I convert this to Euros at the rate you put on A.com then add it to the State one), and the little bit of interest from Virgin goes into the appropriate box. With the OH’s it is the Crown paid here in Euros into box 0525, State paid in £ converted to Euros, and the little interest. We treble check all the additions and enter them up.

[Free at Last]

Slightly worrying - although I have little understanding of what everything on the form means, it seems difficult for me to actually do anything wrong? There are two figures to enter on my form, three on my OH’s. My UK State pension is paid here in Euros, a small private pension paid into a UK bank in pounds (so I convert this to Euros at the rate you put on A.com then add it to the State one), and the little bit of interest from Virgin goes into the appropriate box. With the OH’s it is the Crown paid here in Euros into box 0525, State paid in £ converted to Euros, and the little interest. We treble check all the additions and enter them up.

It sounds to me as though you will be getting some of the low income allowance, which was increased last year, so that might be why your tax bill is lower even though your income increased.

[El Cid]

Our basic tax bill has gone up this year due to the pension increases which are not totally offset by the lower exchange rate.

The good news is that I can directly deduct 60% of the cost of the solar panels we installed last year!

Sid

[El Cid]

It sounds to me as though you will be getting some of the low income allowance, which was increased last year, so that might be why your tax bill is lower even though your income increased.

The low income allowance was increased last year and it hasn’t changed this year, so that’s not the reason for Peter’s problem.

[El Cid]

Peter, I am guessing it is quite a small difference so it is very unlikely that it will set any alarm bells ringing at Hacienda. By the time they might pick up on it you will be back in the UK.

Tranquillo!

Sid

[Free at Last]

It sounds to me as though you will be getting some of the low income allowance, which was increased last year, so that might be why your tax bill is lower even though your income increased.

The low income allowance was increased last year and it hasn’t changed this year, so that’s not the reason for Peter’s problem.

According to the information I can find online, the threshold up to which one could benefit from the allowance was raised for the 2023 tax year which is what the returns being submitted now would relate to?

https://www.mapfretecuidamos.com/consul ... 50%20euros.

[El Cid]

You’re quite right. I had forgotten that it had changed, even though I had updated it in the FAQ. I’m getting too old to cope with the subtleties of Renta! It took me ages to work out where to claim the solar deduction (it’s really complicated!)

The change probably explains Peters problem but I really don’t know whether the exempt income (government pension) affects the allowance.

Sid

[peteroldracer]

[quote="El Cid" post_id=427256 time=1714063692 user_id=By the time they might pick up on it you will be back in the UK.

[/quote]

Out of interest our tax bill here of c€55 for the two of us would go in the UK to around £1000 - not counting free bus passes and winter fuel allowance!
Update: the rebate is already in my bank!

[DipMalaga]

It's my first time completing the IRPF return and wondered if I could get some advice. I paid UK tax on UK rental income in 2022-23 and wanted to know how much of this to include in Renta 2023 to avoid double taxation:

(a) Different tax years: Only 3 months of my UK 2022-23 tax returns falls within the 2023 Spanish tax year - do I need to include just a quarter of my UK tax paid?
(b) Apportioning UK tax paid: My UK tax covered both UK employment income (which ceased before the start of 2023) and UK rental income (for the whole of UK 2022-23): should I count the tax paid on UK rental income as that paid last, i.e. at the 40% rate; or would I need to do something more complicated e.g. apportion the UK tax paid on rental income across my personal allowance, 20% rate and 40% rate.

Due to generous allowances in Spain, the Spanish tax due on the UK rental income is relatively small but I've alread paid much more than this in the UK and want to avoid double taxation.

Thanks in advance for any help

[fyfin]

Our basic tax bill has gone up this year due to the pension increases which are not totally offset by the lower exchange rate.

The good news is that I can directly deduct 60% of the cost of the solar panels we installed last year!

Sid

I asked my accountant about that and she sent me info saying I have to have an energy certificate first. She quoted this :-
Te informamos de las incompatibilidades entre deducciones, de los medios de pago que debes utilizar para satisfacer las obras, las cantidades que dan derecho a la deducción y los requisitos de los certificados

Las deducciones son incompatibles entre sí respecto de la misma obra.
Las cantidades deben ser satisfechas mediante tarjeta de crédito o débito, transferencia bancaria, cheque nominativo o ingreso en cuentas en entidades de crédito, a las personas o entidades que realicen tales obras, así como a las personas o entidades que expidan los citados certificados.
De las cantidades satisfechas deberás descontar aquellas cuantías que hubieran sido subvencionadas a través de un programa de ayudas públicas o fueran a serlo en virtud de resolución definitiva de la concesión de tales ayudas.

No dan derecho a la deducción las cantidades satisfechas mediante entregas de dinero de curso legal.

Se considerarán como cantidades satisfechas por las obras realizadas las necesarias para su ejecución, incluyendo los honorarios profesionales, costes de redacción de proyectos técnicos, dirección de obras, coste de ejecución de obras o instalaciones, inversión en equipos y materiales y otros gastos necesarios para su desarrollo, así como la emisión de los correspondientes certificados de eficiencia energética.
No se considerarán en dichas cantidades los costes relativos a la instalación o sustitución de equipos que utilicen combustibles de origen fósil.

Los certificados de eficiencia energética deberán haber sido expedidos y registrados con arreglo a lo dispuesto en el Real Decreto 390/2021, de 1 de junio, por el que se aprueba el procedimiento básico para la certificación de la eficiencia energética de los edificios.
No se integrarán en la base imponible del IRPF las ayudas destinadas a compensar los costes derivados de la recepción o acceso a los servicios de comunicación audiovisual televisiva en las edificaciones afectadas por la liberación del dividendo digital y las concedidas en virtud de determinados programas en materia de rehabilitación energética.

[El Cid]

Please only post in English or translate it into English before posting.

You can only claim the tax deduction for solar if you have an EPC issued before the solar installation is started and another one after the installation.

It is impossible to claim the allowance without the before and after EPCs. Our installation company made that 100% clear to us and organised both ratings which we had to pay for.. The improvement in the ratings determines the % you can claim which is either 20%, 40% or in our case 60%. Our EPC is now in the high end of the A rating. That, in itself, has probably added 10% to the house value. Today we generated 62Kw/h of energy.

Sid

[fyfin]

Sorry I meant to translate. Well that explains it. So no chance. Thank you Sid