Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Tue, 06 Sep 2022 15:03:00 GMT by Mar DC
My father needs to submit his first self assessment for his foreign pension (no other income). Which of these questions in the SA1 form is intended to cover foreign pension? 1) Have you been getting taxable foreign dividends in excess of £300 a year or any amount of other taxable income? 2) Have you been getting untaxed income that cannot be collected through your PAYE tax code? 3) Do you have any other reason for completing a tax return? Regarding the follow up question "When did you start getting this income?", my father became a UK resident during the financial year 2021-2022 (he moved to England in October 2020). Would 6 April 2021 be the correct answer here? Many thanks
Posted Wed, 07 Sep 2022 12:37:44 GMT by Gary Coombs
Daft question perhaps but have you checked the double taxation agreement with the country paying the pension to check that it is even taxable in the UK? For instance, a German state pension is taxable only in Germany when the recipient is resident in the UK. Each country and type of pension may result in a different outcome...
Posted Wed, 07 Sep 2022 14:26:41 GMT by Mar DC
Thank you for your response. I did check the DTA between Italy and the UK, and my understanding is that the pension paid by the Italian state is taxed in the UK if the person is a UK resident for tax purposes (this is pursuant to Art. 18 of the DTA, as I understand that the exception for pensions for government services at Art. 19(2) would not apply).
Posted Wed, 07 Sep 2022 18:43:57 GMT by Gary Coombs
HMRC will correct me if I am wrong, but as I understand it, while occupational pensions are dealt with in Article 18, state pensions are not considered to be "in consideration of past employment" and therefore are not within Article 18. Instead, they are dealt with as Other Income in Article 22. That said, in the case of Italy, UK has the taxing rights over Other Income, so the answer is something of a lemon...
Posted Fri, 09 Sep 2022 14:56:55 GMT by HMRC Admin 20
Hi Mar DC,

Scenario 2 would be the most applicable and start date 06/4/21

Thank you.
Posted Mon, 12 Sep 2022 11:54:00 GMT by HMRC Admin 17


Mar DC ,
Your previous question does not describe the type of pension eg. state pension or govt employee pension. 

The UK/Italy DTA states that Italian Govt service pension is taxable in Italy, unless the recipient is a national of and resident in the UK,
in which case it would be taxable in the UK. 

State pensions (OAP pension) is taxable in the UK.

Thank you.

You must be signed in to post in this forum.