Is UK tax relief due on foreign pension contributions?


Is UK tax relief due on foreign pension contributions?

Postby susanm on Thu Apr 08, 2010 12:16 pm

Hi,

I have 2 clients, both UK resident, one of whom has made pension contributions to a German scheme & the other to an American scheme. Both are employees. I initially felt that the German contributions would qualify as within the EU but had my doubts about the US payments. After further reading, I am beginning to think that neither should be allowable - can anyone offer their views please?

Kind regards,

Susan
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Re: Is UK tax relief due on foreign pension contributions?

Postby etf on Mon Apr 12, 2010 8:40 am

Hi Susan,

The Revenue's procedural guidance contained in the link copied below may help you with your client who is continuing to pay US pension contributions (401k?) whilst working in the UK.

http://www.hmrc.gov.uk/PENSIONSCHEMES/uk-usa-tax.pdf

If the conditions of the UK/US Double Tax Treaty are met:

-employee contributions will be tax deductible in the UK, and

-employer contributions will not be treated as taxable income.

We hope this helps as a starting point.

Kind regards

etf

http//theexpatriatetaxfactory.com
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