Pension from Italy

I am Italian and moved to England in 2006 where I started to work in the UK until I retired last year. I have UK citizenship and UK fiscal residency as well. I have started receiving a state pension from Italy in September 2023 but they have deducted the income tax already. I have started the procedure to ask them to not deduct the income taxes (I sent the Ep-1 form to HMRC to get a UK fiscal residency certificate so that I can send it to them) but it will take time for this to complete. As I would like to start looking into compiling the UK 2023/24 tax return, I have this question: I know that UK and Italy have a double taxation agreement, but I am not sure if I have to pay the taxes here for my Italian pension first anyway and then claim it back or I can just say when I compile my UK tax return that this particular income is "taxed at source" so I am not due any taxes for that in the UK. Many thanks for any advice.

Hi,

You need to declare it in the UK. if the tax is deducted in Italy you can claim this as foreign tax credit relief to reduce your UK tax liablility.

Relief for Foreign Tax Paid 2023 (HS263)

Thank you.