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Posted Fri, 30 Dec 2022 14:15:55 GMT by tiptap
British citizen have returned permanently to uk after living in Italy. My pension is paid from Italy already taxed. The double taxation agreement seems to imply my pension will be taxed again in uk then I must apply to the Italian authorities for a refund, something which will be very difficult. Is this the case or have I, hopefully, misunderstood?
Posted Thu, 05 Jan 2023 17:29:53 GMT by
Hi tiptap,

You will need to register for Self Assessment and declare this as foreign income:

Tax on foreign income

Posted Thu, 05 Jan 2023 19:08:04 GMT by Gary Coombs
If I understand the DTA correctly, then the pension shall be taxable only in the UK. Is that HMRC's view of the UK/Italy DTA? Tax Credit Relief would then not be relevant and tiptap would have to seek repayment of the incorrectly charged Italian tax from Italy. Again, is that HMRC's view and does HMRC provide folk like tiptap with any help in their dealings with the foreign fisc?
Posted Wed, 11 Jan 2023 08:24:30 GMT by tiptap
Thank you for the reply. I am aware I must declare foreign income, my query is will my Italian pension be taxed a second time here as it is already taxed in Italy at source.
Posted Wed, 11 Jan 2023 12:35:47 GMT by HMRC Admin 32
Hi Gary Coombs,

It depends on the type of received. Under Article 19, the pensions are taxable only in Italy and Article 20 it could be either. HMRC do not provide assistance in dealings with foreign fisc.

Thank you.
Posted Wed, 11 Jan 2023 18:36:27 GMT by Gary Coombs
Thank you. But don't you mean Article 18 for work-related pensions, i.e. those paid in consideration of past employment, Article 19, if tiptap happens to have been in Government Service in Italy and Article 22 for social security pensions, i.e. state pensions? I think tiptap will need to have his DTA ducks in a row before he goes back to the Italian Revenue Authority...
Posted Thu, 12 Jan 2023 17:18:17 GMT by tiptap
Thank you Gary, my Italian pension, from an airline, will eventually be taxed only in uk. For the moment it is taxed in Italy, until the Italian authorities finalise the various docs and this could take years! So I am trying to figure if, for example last year's pension, previously taxed in italy, will be taxed once more here when I do self assessment this year.
Posted Fri, 13 Jan 2023 14:07:03 GMT by HMRC Admin 32

You should declare your foreign pension in the foreign section and claim a Foreign Tax Credit against any tax payable in the UK on this pension.

Thank you.
Posted Wed, 25 Jan 2023 14:43:46 GMT by HMRC Admin 20
Hi Gary Coombs,

Yes, thanks for your input.
The pension-related articles of the UK-Italy DT Convention can be read in full at:  

Thank you.                           

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