Pension from Hong Kong

Dear Sir, I am a retired civil servant from Hong Kong. Each month, I receive pension from the Hong Kong government in Hong Kong Dollars. Because there is a double taxation agreement between UK and Hong Kong, Article 17 of the Double Taxation Treaty with Hong Kong. In the agreement, the pension is only taxable in Hong Kong, and it is not taxable in the UK? Is my understanding right? Many thanks.

Hi ytmak2011 Mak,

Article 17  of the UK/Hong Kong double taxation agreement. advises that "pensions and other similar remunerations" arising in Hong Kong and paid to a resident of the Uk, in consideration of past employment, are only taxable in Hong Kong.  
This will include government pensions.  
As this income is not taxable in the UK, it should not be shown on a self assessment tax return.

Thank you.

Good afternoon, thanks very much for your reply. Can I ask few further questions? First, people saying that although pensions from Hong Kong of past employment are not taxable in the UK, but one should declareb this pension in the tax self-assessment(SA) return, if one has to fill in the SA return for other reason, is this correct? Second, can I transfer the pension recieved in Hong Kong to an UK bank without paying UK tax? How is this related to the so-called remittance basis? Third, if I keep the pension in Hong Kong, and some years later, I transfer the lump sum to an UK bank, again, would this regarded as a remittance transfer and taxable? I appreciate very much for your help. Best wishes, Ying MAK

Hi,

The double taxation agreement between the UK and Hong Kong, advises that pensions and other similar remunerations, arising in Hong Kong and paid to a resident of the UK, are taxable only in Hong Kong.  For this reason, it should not be included in your self assessment tax return.

Thank you.

Hello, Please can you advise as to how I pay the tax owed on my HK pension from the United Kingdom, it seemed far easier last year. Every bank in the UK and Europe require a SWIFT bank code or IBAN number or similar to make an international transfer, even by FPS. I have been in to my local HSBC branch and they have confirmed this for me. The information I have received stating the amount owing has none of these. Would you have an email address that I can contact to enquire about this please? Thank you.

Hi KCJ Jones,
Under the terms of the double taxation treaty, the Hong Kong pension is only taxable there.
You do not need to declare it in the UK.
Thank you. 

 

Dear Sir, If I get my Hong Kong civil service pension lump sum after I come to live in the UK, do I have to pay tax for the lump sum? Thank you.

Hi,
The UK / Hong Kong tax treaty allows the Hong Kong tax authorities to tax your civil service pension.
Thank you.