Non-UK private pension and investments

[AGrove]

I am a dual citizen (UK & Philippines) and currently resident in UK. My income are all in UK only. I have a private pension insurance plan, investments and properties in the Philippines. In a few years time, my private pension plan will mature and I'll receive roughly £15,000 as a lump sum payment. Also in the near future, I may want to liquidate some of my investments (mutual funds). I will need to file an income tax return in Philippines once I receive my personal pension and pay CGT once I sell my mutual funds. I think the pension is also subject to income tax in UK. Does this income need to be reported as gross income less tax paid in Philippines ? What about the mutual fund liquidation, how does this need to be reported on my UK tax return ?

[AmanSood]

There is a double tax treaty between the UK and Philippines and under this as a UK tax resident, you shouldn't be taxable on your pension in Philippines but as you rightly say you would have to pay tax on it in the UK. The amount you would report is the gross amount and if you are taxed on this income in Philippines that you would have to claim double tax relief on your return. Regarding the mutual fund, you would have to pay CGT on this in the UK and claim double tax relief on your return.

[DavidTreitel]

There is a double tax treaty between the UK and Philippines and under this as a UK tax resident, you shouldn't be taxable on your pension in Philippines but as you rightly say you would have to pay tax on it in the UK. The amount you would report is the gross amount and if you are taxed on this income in Philippines that you would have to claim double tax relief on your return. Regarding the mutual fund, you would have to pay CGT on this in the UK and claim double tax relief on your return.

CGT is incorrect. The gain on the mutual fund would be an offshore income gain, taxable to UK income tax.

[maths]

To ascertain the UK tax treatment of investments in offshore mutual funds it is necessary to identify if the fund is a "reporting" or "non-reporting" fund for UK tax purposes.