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Posted Sun, 10 Sep 2023 15:24:39 GMT by Paul
Hello, I moved to United Kingdom in July, 2023, and prior to that I was working in Luxembourg. During the time I worked in Luxembourg, my previous employer (Private Business) and I made contributions under a Complementary Pension Scheme in Luxembourg. As a result of my move out of Luxembourg, I have the option to liquidate my vested rights in the scheme - the amount only comprises of the contributions made by previous employer and myself. Could you please let me know whether I have to i) Declare the amount received in FY22/23 Tax declaration and/or ii) Pay UK Taxes on the amount received In context of the payment received, my situation falls under Article 17 Paragraph 2 of 2022 UK-Luxembourg Double Taxation Convention and protocol. Thank you
Posted Mon, 18 Sep 2023 14:05:49 GMT by HMRC Admin 32

Article 18 of the UK / Luxembourg double taxation agreement, advises that as a resident of the UK, you will be taxable in the UK on the pension withdrawal in Luxembourg.  

UK-Luxembourg 1967 Double Taxation Convention (consolidated version)

As this is a foreign pension, you would need to declare it in a Self Assessment Tax Return on SA106 in the tax year the pension payment arises.

Thank you.

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