Pensions and residence

[Peter58]

I'm new to forum, have searched but not found. As a resident abroad who has reached pension age and submits HMRC self-assessment and a return in my European state of residence, it seems that both states are happy with my taxing my UK occupational pensions in UK, that the DTA is happy with taxing my DWP pension only in my state of residence (to whose resident bank it is paid), yet the SA main form still wants to know my DWP entitlement, which will probably raise payable tax. The residence and remittance form was enough worry already. Any tips?

[Louiseravot]

If you're taxed on your DWP pension in your country of residence under the DTA, just declare it on the SA form for reporting. It shouldn’t increase your UK tax if you complete the SA109 and claim treaty relief.

[Flemm678]

Make it clear that the DWP pension is taxable only in your country of residence under the DTA.

[darthblingbling]

Strictly HMRC expect HS304 completing if you are non resident but have UK source income that's exempt from UK tax under treaty. However a good number if people just declare the position in the white space note area of the return without much fuss.

[Peter58]

Thank you all for your comments. I've tried the scenario where I additionally enter my DWP pension entitlement in SA100 box 8, and it bumps up my tax a lot. Meanwhile SA109 is as it has been for years, using box 16 and avoiding complicated relief claims. I'm encouraged by the "white space note" suggestion to just say it there. The absence of "fuss" may of course merely be the result of lightly trained HMRC staff being spread thinly. I know my country of residence will tax it. Maybe HMRC will want proof of that, one day.