Pension Earnings

T.C.

I have a new UK client who has pension income from the UK, Sweden and Holland. Any experts out there who can point me in the right direction for the tax treatment of this?

Ellabobbin

Hi T.C. I am by no means an expert but foreign pensions are, I believe, entered into the tax computation at 90% of their gross value - I'll find the legislation ref later if that helps? You then get deduct the DTR if they have also suffered foreign tax. Hope that helps?!

T.C.

Thanks. It is somewhere to start!

Ellabobbin

Ok... ITEPA 2003 s.575 Where foreign pension income is taxed on an arising basis, a 10% deduction is available - ie only 90% of the pension is taxable in the UK. The 10% deduction is not available if the foreign pension is taxed on a remittance basis (if taxpayer is a non-dom)