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It's 11 days since I posted a question to HMRC as to why they had not communicated their acceptance of the Belgian position on the taxation of their state pensions. Since then, HMRC have given full refunds on UK tax paid on Belgian state pensions in 19/20 and 20/21 to the person whose tax advisor had talked to HMRC and been told of the decision. I am perplexed as to what is holding up a clear message that would allow others, like many of those people who have posted messages on this forum, to get their tax affairs sorted.
I understand from a tax advisor that they have been advised by HMRC that the Belgian position on the double taxation agreement has now been accepted and that Belgian State pensions will be taxed in Belgium, not the UK, as of 2019.
Why has HMRC "Admin 17" not communicated that outcome on this site?
I cannot comprehend the answer from HMRC Admin 10 which is diametrically opposite to the one given the Deputy Director of HMRC, on behalf of the Chief Executive, that is quoted in the July 9 posting by Birch. The implication of the Deputy Director's letter is that the Belgian position on the UK Belgium Tax treaty for Belgian state pensions beginning before 2013 has now been accepted and that tax should be paid there, not in the UK; moreover it clearly states that HMRC will refund taxes previously paid in the UK for the years (2019 +) in which the Belgium is now demanding retroactive payments. How can it be that guidance has not been revised to the relevant HMRC administrators?
Incidentally, I have corresponded with the Belgian tax authority and they have insisted that I pay tax on my Belgian pension there and that my only potential recourse is to apply for a review by the "Service de conciliation fiscal".
Although related responses from HMRC have said that Belgian state pensions begun before Jan 2103 are subject to UK, not Belgian, tax the Minister responsible for UK taxation (Jesse Norman) has recently written a letter to a local MP in Cheltenham accepting the Belgian position that the provision of the Double Taxation Treaty between the two countries had perviously been wrongly interpreted and the pre-2013 exception does not apply to state pensions.
It seems that there is considerable confusion within HMRC. If I pay the tax requested in Belgium and file amended returns in the UK for 2019/20 and 2020/21 will HMRC agree to repay me?