Commuted pension gratuity and long year service

Hi, I retired and moved from Hong Kong to the UK in Aug 2021 and become UK resident. Under double taxation agreement between the UK and Hong Kong, I have two questions: 1. Pension from HK employer is taxable in HK only. How about the commuted pension gratuity? It is a lump sum that taken out from my accrued pension, received in Nov 2021, need to pay UK tax? Can I put it under pension? 2. Long Service Payment was received in Nov 2021 from my last employer but it was setoff from my accrued Mandatory Provident Fund (MPF) according to HK ordinance. HK non-voluntary MPF is also known to be tax free in the UK. So, is the Long Service Payment received taxable in the UK? Thank you very much.

Hi,

Under Article 17 of the double taxation treaty, pensions are only taxable in Hong Kong. As the long service payment is covered by the MPF then it is not taxable here. Neither sources need to be declared in UK.

Thank you.

Thank you very much for the reply. My MPF, long year payment and commuted pension gratuity have been remitted to the UK already. So under article 17, are these incomes have to be reported in my tax self assessment though need not to pay tax in the UK? Thank you very much.

Hi Win Win,

You would not need to declare them in your Self Assessment tax return, as they are not taxable in the UK.

Thank you.