Entering Belgian State Pension and Belgian Private Pension Lumpsum payment in Self Assessment

I am completing my UK Self Assessment for 2022/2023. I started receiving a Belgian State Pension in February 2022. Where do I enter this on the Foreign income part of Self Assessment and do I pay tax in the UK on this state pension in terms of the Belgium Tax Treaty with the UK. Secondly I received a lump sum payment from my Belgian Private Pension from the years I worked in Belgium. This was paid in February 2023 as well. The Belgian Tax authorities deducted the 16.66% withholding tax on the gross lump sum payment. As I understand in terms of the Belgian Tax Treaty I do not pay tax in the UK on this capital payment. Do I have to enter it on the self assessment form. Many thanks for your help and advice.

Hi
The Belgian state pension is only taxable in Belgium so you do not need to declare this.
As the private pension started in February 2023, this also does not need to be included.
Please note the return that it has been received but is exempt under Article 17 of the DTA.

Many thanks for your reply. So I do not declare the Belgian State Pension on the tax return. Secondly to just be clear, do I need to declare the amount of lump sum payment I received on the tax return or not. Thank you for confirming that I do not need to pay any extra UK tax on it as it is exempt. And if I have to declare it, where do I enter it? Many thanks again.

Hi
Belgian state pension is not taxable in the UK and should not be shown on the tax return.  
If the lumpsum relates to the state pension, then it should not be included on the tax return.  
If the lumpsum arises from a private pension first credited or paid before 6 April 2013, then it should not be included in the tax return.  
If the pension is first credited or paid after 6 April 2013, then it is taxable in the UK and should be declared on the tax return.

Many thanks for your reply. I am still not clear on this. The lump sum is from a private pension and paid in February 2023. However, in terms of the Belgian UK tax treaty - I have paid the tax on it in Belgium and do not have to pay tax on it in the UK but do I have to declare it on the UK tax return and where do I do this as I cannot find this when filling in the form online. I do not receive any regular private pension payment from Belgium. Sorry to keep asking to try to get a clear answer. Thanks in advance

Hi Eileen Heenan,

You will declare the private pension under foreign income and at the pension section within that claim foreign tax credit relief for the Belgian tax paid.

Thank you.
 

Thank you again - so the tax return will take this Article 18 into account in determining what tax I pay as this says I do not pay any tax on it. Early in this thread - there was a statement that as I do not pay tax in the UK on them, I do not have to enter them.(The Belgian state pension is only taxable in Belgium so you do not need to declare this. As the private pension started in February 2023, this also does not need to be included. Please note the return that it has been received but is exempt under Article 17 of the DTA.) Your last comment contradicts this. Here is Article 18 of the Double tax treaty between UK and Belgium: ARTICLE 18 – PENSIONS Subject to the provisions of Article 19, (a) pensions and other similar remuneration arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in the first-mentioned State; (b) however,wherepensionsandothersimilarremunerationunderapensionschemewerefirst credited or paid before 1 January in the calendar year next following that in which the first Protocol to this Convention entered into force, all payments under that scheme shall be taxable only in the other State. So it seems it is not foreign income - its pension. My apologies for keeping asking but want to complete the return correctly and now have conflicting advice. Many thanks

Hi,
 

Article 18(2) of the UK / belgium double taxation agreement, refers to the date 31 January 2013.  Any state pension first paid to an individual before that date, is taxable only in the UK, but any state pension first paid to an individual after that date, would be taxable only in Belgium .

Thank you.

Hi Thanks for your reply. I am referring to the lump sum capital payment I received for my private pension in my question and not the State Pension. For the State Pension it is clear that I do not declare it on the UK tax return. Please can you read my question again and let me know regarding the lump sum which is also covered by the Double Taxation agreement. And could you let me know if there is anyone I can talk to to get further advice here as I would like definitive answers to my questions. Many thanks again, 

Name removed admin .

Hi,

Your lump sum payment falls under Article 18 (a) so is only taxable in Belgium.

Thank you.