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Posted Mon, 28 Oct 2024 14:30:57 GMT by Edward Bird
Hi, I have a pension in South Africa that matures shortly. I want to convert to an annuity and pay the income to my mother in South Africa who needs care. None of the money will be brought over to the UK. Do i need to declare it and do i need to pay tax on it in the UK (it is a small pension so wont attract much tax in South Africa? If i am taxed on it in the UK what rate would that be on? Thank you for your guidance.
Posted Mon, 04 Nov 2024 12:15:35 GMT by HMRC Admin 19 Response
Hi,
As you are tax resident in the UK for the whole tax year, you are taxable in the UK on your worldwide income. This means that you would need to declare the annuity/pension in a Self Assessment tax return.  
The article 17 of the tax treaty that exists between both countries confirms that the pension/annuity is only taxable in the UK. Any tax paid in South Africa, should be claimed back by submitting a certificate of residence along with the South Africa claim forms. You can see guidance here:
How to apply for a certificate of residence to claim tax relief abroad
Thank you.

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