This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Tax on UK State Pension overseas resident

Kevinm
Posts:12
Joined:Wed Aug 06, 2008 3:35 pm
Tax on UK State Pension overseas resident

Postby Kevinm » Mon Dec 04, 2023 9:01 pm

My brother is resident in Portugal (NHR status).
He is in receipt of UK state pension since Oct 2022 & UK Teachers pension. He fills in self assessment on line as he has rental income in the UK from one house. He has given his Portugal address to HMRC.
He has declared all his income including UK state pension to the Portuguese tax authority who say he has no tax to pay there. He has no income in Portugal.
The question is should his UK state pension be taxed in the UK ? I ask because although he put his UK state pension on his self assessment form his PAYE coding has never reflected this & all his personal allowance has stayed with his teachers pension. It is as if HMRC think he is paying any tax due on the State Pension in Portugal. However by putting the UK State pension on his self assessment form the auto calculation means he pays tax at 20% on it. I'm wondering if he should not be putting the State Pension on the self assessment form ?
Thanks for any help in advance

Jholm
Posts:350
Joined:Mon Mar 11, 2019 4:22 pm

Re: Tax on UK State Pension overseas resident

Postby Jholm » Tue Dec 05, 2023 1:54 pm

If he is non-UK resident, UK pensions are generally taxed in the country they live in and exempted from UK tax (or UK tax reclaimed) via submitting form HS304.

Check the provisions of the double tax treaty.

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax on UK State Pension overseas resident

Postby bd6759 » Tue Dec 05, 2023 11:01 pm

Depends on the source of the pension. Pensions paid by government, local or national, are taxable in UK. Other pensions are taxable in Portugal.

Jholm
Posts:350
Joined:Mon Mar 11, 2019 4:22 pm

Re: Tax on UK State Pension overseas resident

Postby Jholm » Thu Dec 07, 2023 4:03 pm

Overseas residents

You may be taxed on your State Pension by the UK and the country where you live. If you pay tax twice, you can usually claim tax relief to get all or some of it back.

If the country you live in has a ‘double taxation agreement’ with the UK, you’ll only pay tax on your pension once. This may be to the UK or the country where you live, depending on that country’s tax agreement.


https://www.gov.uk/state-pension-if-you-retire-abroad/tax-on-your-state-pension#:~:text=Overseas%20residents,tax%20on%20your%20pension%20once.

bd6759
Posts:4239
Joined:Sat Feb 01, 2014 3:26 pm

Re: Tax on UK State Pension overseas resident

Postby bd6759 » Sat Dec 09, 2023 11:54 am

There is a DTA with Portugal.


Return to “Income Tax”