Overseas resident - reclaim tax paid when cashing out pension

I live in the UAE which has a double taxation agreement with the UK and zero personal income taxes When cashing out a pension (I'm over 55) the pension provider insists they will deduct UK tax (on an emergency code, on month 1 basis!) despite me informing them and providing a certified tax residency certificate R43 looks like the right form to reclaim, but doesn't ask for or provide opportunity to supply the tax residency certificate To reclaim this tax should I be submitting first a Form DT-Individual to establish overseas residency and then R43 to claim the refund? Anything else I've missed? Note: thanks for this fantastic resource, extremely helpful!

Hi,

The UK pension provider is following the correct guidance. Please do not use form R43 as it is not appropriate to your circumstances.  

You will need to claim a repayment of the tax from HMRC. To do this, you will need to download the DT individual form here:

Double Taxation: Treaty Relief (Form DT-Individual)

Complete the form, declaring your pensions and lump sums and sign the form. Please send the completed form to the UAE tax authorities. The UAE authorities will validate the form, to  confirm that you are resident in the UAE for tax purposes and return it to you.  You then need to send the validated form to the HMRC address on the front page of the form.  

From the completed form, HMRC will have confirmation that you are resident in the UAE for tax purposes, so we can refund any tax deducted from your pension. Please note repayment can only go to UK bank accounts.

Thank you.

Thanks for the reply According to the UAE Federal Tax Authority the process is different Ive submitted a set of documents : Passport. Valid Residence Permit. Emirates ID. A certified copy of residential lease agreement. Source of income/salary certificate. A bank statement issued by a local bank covering 6 months within the financial year related to the request. Entry and exit report from Federal Authority of Identity and Citizenship or a local competent Government entity. And been issued with a certified Tax Residency Certificate https://tax.gov.ae/en/services/issuance.of.tax.residency.certificate.aspx They have assured me that I just need to send this with the form you mention above, but that they will not complete/add anything to this FormDT-Individual directly - grateful for confirmation

Hi,

Where a fully completed DT Individul form is not signed or stamped by the Federal Tax Authority (FTA) you must support your claim by submitting to HMRC, a fully completed DT individual form and a Tax Residency Certificate from the UAE Federal Tax Authority (FTA) when making your claim for UK tax relief.

Thank you.

Dear HMRC Admin Team Firstly, this service looks really helpful. As reported by other people on here I cannot get my issue resolved by phone, largely because the calls drop part way through every conversation I have with HMRC advisors. I will be very grateful if you can help me please. I am replying to this thread because my circumstances are very similar to the person above.  I am tax resident in Portugal  I have a DTA certificate  I have been tax resident in Portugal for three years  I have been Non-UK Tax Resident for three years  I have a pension in the UK  I have drawn the 25% tax free pension amount, and now drawing the remaining 75%  I am on UK Emergency Tax code 1257L W1/M1 and the pension company is deducting emergency tax What I have done so far  Submitted form P85 three times (as advised by HMRC on the phone last year)  I was then advised to complete HMRC Double Taxation Treaty Relief Form – DT-Individual  This form was sent by post in February and is showing as received by HMRC on 27 Feb 2023  I also sent proof of Portuguese Certificate of Fiscal Residence, and proof of Portugal Residency According to the HMRC government gateway, I should have received a reply by 1 May but so far nothing received. The matter is still showing as pending on my online personal tax account (government gateway). I need to understand whether there is something further to be done other than wait for this to be completed. I have seen suggestions online that I should complete a self-assessment tax return. My online personal tax account (government gateway) says that ‘You are registered for Self Assessment. To use your Self Assessment online, you need to request access.’ Please advise whether I need to complete a Self Assessment. Any other advice gratefully received.

Hi Alfie2022,

I am sorry to hear of the problems you have experienced.
It is however not entirely clear from your question whether your form DT-Individual was certified by the tax authority of Portugal before you sent it to HMRC.
The correct course of action in your circumstances is explained on page 7 of form DT-Individual:
ie, when you have completed all relevant sections of form DT-Individual, you have to send the completed form to the tax authority  of your country of residence.
By doing so,you are giving your consent to the relevant tax authority to certify to HMRC that you are a resident of (and paying tax in) that country.
The taxation authority will then either (a) send the certified form direct to HMRC or (b)  return the form to you to send to HMRC.
On receipt of the certified form, HMRC will make any repayment of tax due (and, if appropriate, issue code NT to the relevant pension provider).
On the basis of the information provided, completion of a Self Assessment tax return is not required.
As regards when you can expect to receive a reply from HMRC, please check by using the relevant information tool below which is updated weekly:
Check when you can expect a reply from HMRC 

Thank you

Thanks for the response regarding your point ' ... whether your form DT-Individual was certified by the tax authority of Portugal before you sent it to HMRC ...' Portugal is one of the countries that no longer does this certification. Instead, the Portuguese tax authority provides a certificate of tax residency. You will note that this alternative process is referenced on the form DT-Individual. The good news is that the process has finally concluded. Tax code changed. Refund pending.