Civil Service Pension - Move to Australia

I am in receipt of a UK civil service pension from MyCSP. Should I return to Australia (and so become resident only in Australia for tax purposes as a returning Australian citizen) how would my UK civil service pension be taxed? The DTA with Australia suggests pensions will always be taxed in Australia: Pensions (including government pensions) and annuities paid to a resident of a Contracting State shall be taxable only in that State. But the HMRC Website says: Tax when you live abroad If you live abroad but are classed as a UK resident for tax purposes, you may have to pay UK tax on your pension. The amount you pay depends on your income. If you’re not a UK resident, you don’t usually pay UK tax on your pension. But you might have to pay tax in the country you live in. There are a few exceptions - for example, UK civil service pensions will always be taxed in the UK. Can you confirm if income tax would be payable in the UK, or Australia, or both (but subject to DTA provisions - UK tax paid off set against Australian tax due)? Thanks

Hi,

Government pension normally remain taxable in the UK. However, under the terms of the doubletaxation treaty with Australia, you can opt to have it taxed there. in order to do so you would need to submit a claim.

Double Taxation: Treaty Relief (Form DT-Individual)

Thank you.

Hello HMRC Admin 32 Many thanks for your reply. Unfortunately, it is not really answering the question I was trying to ask. What you are telling me (I think - correct me if I am misunderstanding) is: If my GOV pension is taxed in Australia I can claim full relief from UK tax under the terms of the DTA (using the form you have kindly directed me towards). So, pay tax on the GOV pension in Australia, get full relief from UK tax under DTA. What my question was (meant to be) is: Is there any way in which a GOV pension could be taxed in the UK, instead of Australia? Given that the DTA says GOV pensions 'SHALL' be taxed in the country of residence (use of the word shall in legislation implies it is not optional, rather it is mandatory) I am not sure there is an 'option' to choose where it is taxed. I appreciate that I will only pay tax once, but I am trying to establish in which country I will pay it because the tax rates are quite different. I am not trying to evade tax here, just work out what my net income will be. Thanks

Hi mattinmacc

The pension would reman taxable in the UK if you do not submit a claim for DTA relief.

Thank you