I am afraid that Income from Property is investment income and not Net Relevant earnings.
I am not a Spanish tax expert but have you checked out (it might be worthwhile) whether you could claim relief against your Spanish tax for any contributions to a UK pension provider that existed before you went to Spain under the Double taxation Agreement - just a thought but would have to be answered by a Spanish Tax expert
Im afraid it isnt Spanish tax which is at issue but UK tax as mentioned in the email. The optional information re Durcal, Spain, was not part of the question.
The total picture is that I am a married partner earning from rented accommodation in UK and paying UK tax for it and by so doing ,I thought ,getting tax relief for stakeholder pension contributions I am making to a UK scheme which I can do for 5 years after leaving UK and/or by means of net relevant earnings chargeable to uK tax. My partner does not have UK earnings and therefore cant continue her stakeholder pension contributions having lived in Spain for 5 years. I was hoping I could make the rented flat jointly owned or gift it to my partner to allow her to make contributions with tax relief on the basis of earnings - pension providers wont accept contributions without tax relief, as usual things are as adverse as they can be when it comes to trying to look after oneself tax wise. It appears I must check with hmrc just exactly on what basis a non resident of UK can or cant contribute to a stakeholder pension though there may be no point if we are talking about investment income not classed as earnings.pm
Yes sorry rental income is not earned income unless it arises from the carrying on of a trade in letting or is furnished holiday letting under ICTA88 S644 and this is very unlikely from what you have said.
I attach a couple of links that might assist you in this matter and if you are not satisfied with the answer I guess that you would be best to contact HMRC directly for a ruling. Please ensure however that if you do it by phone that you record full details of the name date time etc of the information given.
Links attached
http://www.hmrc.gov.uk/manuals/REManual/RE284.htm net relevant earnings
http://www.hmrc.gov.uk/manuals/pimmanual/PIM4105.htm furnished holiday lets
Tax Preparer
Fully Trained Inspector of Taxes / District Inspector/ Team Leader/ Offshore Consultant/ 41 years