Clive Smaldon

Im a tax acct, not HMRC. HMRC, This is incomplete...if a UK treaty resident. Under the DTA South African pensions are taxable ONLY in the county of treaty resdience (the person asking the question needs to determine which country has treaty residence as they are statutorily resident in both). If treaty reasident in the UK you cannot claim the tax paid in South Africa, the South African pensions should be paid gross (you need to complete forms RST01 and RST02 send to HMRC, get certificates of tax resdience in the UK, get HMRC to certify the forms) then send to South Africa for the tax to be repaid in South Africa. HMRC will disallow the tax credit eventually as claimed, it is not claimable in the UK as the pensions are ONLY taxable in the UK under the DTA for UK residents. If the person is treaty resident in South Africa then the pensions and tax do not go on Self Assessment forms.

Im not HMRC...Im a tax accountant...sorry Catherine, your logic is incorrect, the calculation is to work out the amount you are entitled to based on income, then take off the amount received and the difference to be paid to HMRC, full rates for the year dont come in to it, thats the way it is, and always has been...you were, in the legislation's eyes never entitled to the £1880 in full for the year, only the reduced amount after the addback.