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Posted Fri, 06 Sep 2024 16:12:47 GMT by Christian Brath
I am Danish national and worked in the UK 2008-2010 for UK employer and have a private pension with my former employer. I left the UK January 2011 and I am now seeking to have the pension pot (around GBP 50K, subject to taxes) paid out full and my pension account closed. I have just turned 60 years and gone in to early retirement, domiciled in Thailand. Initial indication is that I will be subject to around 30% emergency tax in the UK after 25% deduction tax free of the GBP 50K pot, so net net payout around GBP 36K. My question : Can I apply for a tax rebate / discount with HRMC? Seems a huge taxation for a fairly small amount and as a retiree, I need every penny to make ends meet. Thank you for your kind reply.
Posted Fri, 13 Sep 2024 12:47:43 GMT by HMRC Admin 13 Response
Hi
The tax treaty between the UK and Thailand, does not include an article on pensions.  
This means that there is no tax relief available on your UK pension, so it remains taxable in the UK.  As a national of Denmark, you are entitled to claim personal allowances against your pension payment in the UK.  
You should write to:
The Inland Revenue Department, 
Ministry of Finance, 
Bangkok, 
Thailand, 
to claim a credit of up to 100% of the UK tax paid, to set against the Thai tax payable.  
Please have a look at the guidance at: DT18650PP - Double Taxation Relief Manual: Contents - HMRC internal manual.

Thank you  

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