UK/Cyprus tax agreement amendment

My Military pension will be taxed at source [UK] as from the end of 2024. What do I need to do to ensure I get my personal allowance and the correct tax code from day 1

Hi,

Please contact our PAYE helpline, to ensure your military pension has the correct tax code applied against it.  
If you are resident in Cyprus, then your state pension will not be taxable in the UK when the time comes for it to be paid, as well as any private pension.  
Once you are in receipt of your state pension and or private pension, please download and complete form DT individual, which can be found here
Double Taxation: Treaty Relief (Form DT-Individual)
Complete and sign the form, then send it to the Cyprus tax authorities to validate.  
Once they return it to you, send it to HMRC at the address on the form.

Thank you

Hi I live in Cyprus (the North of the island - the Turkish Republic of Northern Cyprus). How do I claim treaty relief for my UK pension and interest? The Cyprus tax authorities (Republic of Cyprus) will not allow me to register with them as I am not in that part of the island that is government controlled so I cannot send them Form DT-Individual and ask them to validate it. Is there an alternative way of evidencing that I am resident in Cyprus?

Hi John Taylor,
If you cannot send in a double taxation claim form then you cannot claim relief.
This is only granted when you are declaring the income in another country:
Tax on your UK income if you live abroad
Thank you. 


 

Hi Thanks for your reply, however it appears at odds with the information I was given by your colleagues in CNR Claims. They said: “I have attached a link to the Double Taxation Relief manual below :- DT5354 - Double Taxation Relief Manual: Guidance by country: Cyprus: Notes - HMRC internal manual - GOV.UK (www.gov.uk) This advises that under the terms of Geographical scope, the UK considers the convention to cover the whole island of Cyprus. Therefore we apply all of the provisions of the Double Taxation agreement, regardless of where in Cyprus an individual lives.” I have read through the treaty but could not find any reference to “declaring the income” - is this requirement contained in other legislation?

Hi.
The UK would not accept a DT-individual form stamped by the The Turkish Republic of Cyprus.  The UK / Cyprus double taxation agreement covers the whole island, but it must be stamped by the Republic of Cyprus.  
If it is not, it cannot be accepted, as it is incomplete.
Thank you.

 

Hi You seem to have missed the point. I was asking which piece of legislation stipulates that Form DT-individual is the only way that residence on the island can be evidenced? Is in fact a claim needed where TIOPA 2010 s.6(2)(b) is the operative provision?

Hi John Taylor,
The legislation at TIOPA 2010 confirms:
Double taxation arrangementsSection 4
This is in relatation to taxes covered under the terms of the Double Taxation Treaty and this includes income tax. Unilateral relief is for taxes not covered by this or if there is no agreement
Please see:
INTM161030 - UK residents with foreign income or gains: double taxation relief: Unilateral relief
As you have stated you live in Cyrpus, there is a DTA agreement and this covers Income Tax and as such relief would be applied via a valid claim.
Thank you. 

Thanks for your reply but nothing in it answers the question I have been asking. Can you once again please let me know where in the legislation there is a requirement to make a claim using Form DT-Individual?

Hi,

If you are claiming a refund under the terms of the double taxation treaty, HMRC must have evidence that your are in fact tax resident in the other country. This is done by the DT Individual form or by completing form HS304, this form also stipulates that a tax residence certificate from the other country must be supplied. Please refer to the following guidance, and in particular point 3.

HS304 Non-residents — relief under double taxation agreements (2023)

Whichever way you claim, HMRC must have certifaction from the other country.

Thank you.

Hi Thank you for your reply but again you have not answered the question. Where in the legislation, not in any guidance but the actual law, is the requirement to make a claim so that the provisions of the treaty apply? From my reading of the legislation the provisions of the treaty apply once the residence requirements are met. There is no mention in the legislation or the treaty that I can see that requires a claim to be made - if I am wrong, please point me to the appropriate provision in the legislation or the treaty?

Hi
This has been answered in general guidance.
We are unable to respond to questions about HMRC policy (including the provision of guidance) on this forum.
If you have a specific query re the rules of double taxation relief claims please call or put the query in writing  and our technical staff will be happy to provide a detailed response. 

 

As I am considering moving to TRNC Northern Cyprus it was interesting to see that you recognise Cyprus as a whole, but not accept signed resident verification from Northern Cyprus for the Form DT- Individual. As the Republic of Cyprus does not recognise The Turkish Republic of Cyprus and would not sign any document for a person residing ( ex Pat) in Turkish Republic Northern Cyprus, it seems to be a catch 22 situation. Is there no other method or situation to overcome the signing of the Form DT- individual for a UK Ex- Pat residing in the Turkish Republic of Northern Cyprus once they have residency?

Hi Taxonme Grey,
There is no other method.
The DT individual must be signed by the government of the Republic of Cyprus.
If it is not, we cannot accept it as the form is incomplete.  Sorry.
Thank you.