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Posted Wed, 16 Nov 2022 22:19:56 GMT by nexiv92
My dad is Italian and he needs to submit self-assessment for his foreign pension (no other income). As he was unable to verify his identity for Government Gateway, he cannot file online and instead we are printing the relevant forms (SA100 and SA106) to be filled in and sent by post. We have read the helpsheets and have a couple of unanswered questions we hope you can advise on. 1. My understanding of the DTA between the UK and Italy is that pension should be taxed in the UK if the person is a UK resident (which my dad is). He has been taxed on his pension in Italy. Please could you confirm that he cannot claim for FTCR on the SA106 form and must instead claim relief in Italy? 2. The SA106 form states that ‘All entries should be in UK pounds’. For the yearly net amount, this can be calculated by summing his monthly payments. However, for his gross amount, as provided on his ‘certificazione unica’ (CU, equivalent/approximate of P60 I think), we will need to convert this from EUR to GBP. Please could you advise what exchange rate should be used? Should it be the exchange rate applicable on the day it arose overseas, i.e. the date on the CU? Many thanks

[External link removed - Admin]
Posted Mon, 21 Nov 2022 14:20:09 GMT by HMRC Admin 18

You would fill in the SA106 and show the tax there in order to claim the tax credit. This will be limited to the amount of UK tax due. Any surplus tax paid in Italy will need to be reclaimed from there. For the exchange rate, please see:

Exchange rates from HMRC in CSV and XML format

Thank you.

Posted Mon, 21 Nov 2022 15:50:49 GMT by Gary Coombs
Surely tax credit relief is not in point. The UK/Italy DTA says in Article 23 (1) that the pension is taxable ONLY in the UK. that would suggest that nexiv92 is correct when they say that their father cannot claim FTCR and must claim relief in Italy.
Posted Tue, 22 Nov 2022 23:54:40 GMT by nexiv92
Thank you HMRC Admin 18 and Gary Coombs for the replies. @HMRC Admin 18, I'm unclear on your replies. Please could you clarify: 1. Based on the information provided, my dad cannot apply for FTCR, correct? 2. Thank you for sharing the link to the exchange rates. Please could you provide more guidance on my original question as I'm still unclear on the following: should I use the exchange rate applicable on the day the yearly pension total arose overseas, i.e. the date on the CU? Or does this need to be calculated for each monthly payment and summed?
Posted Thu, 24 Nov 2022 15:27:18 GMT by HMRC Admin 10
To convert from a foreign currency to pounds sterling, please use the official rate of exchange at the time of the exchange.
It is up to you whether use the yearly rate, the monthly rate or the spot rate.
If a conversion was undertaken to deposit the money into a UK bank account, then this figure can also be used.
The pension will need to be declared on SA106, including the tax deducted.
Your father can claim a foreign tax credit relief for the foreign tax paid.
The supplementary page SA106 must be completed using pounds sterling only.
The official exchange rates can be found at Exchange rates from HMRC in CSV and XML format - GOV.UK (,  SA106 supplementary page :
SA106 Completion notes :
Foreign notes 

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