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Posted Thu, 30 May 2024 11:17:44 GMT by Gill Salmons
Hi there My client is resident overseas in a country with which the UK has no double tax treaty. They are approaching retirement age and would like to have their pension paid from a UK company pension scheme of which they have been a member for many years. Their question is, whether there would be UK tax payable on this pension or not. It seems to me that this pension would be taxable in the UK since there is no reason for it not to be. Do you agree? Am I missing anything please?
Posted Tue, 04 Jun 2024 10:50:57 GMT by HMRC Admin 10 Response
Hi
As there is no tax treaty between the UK and this country, a UK based pension/state pension will be taxable in the UK, but most likely in the other country as well.  UK nationals can claim a personal allowance to set against their UK pensions.  Your client would need to find out if their country of residence would give a tax credit for the UK tax paid, to avoid double taxation.

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