Foreign Pension Income

Kay999 Registered Posts: 1
Hello - I have a client who has a small pension in Canada. I have read an article that quoting that you don’t pay UK tax on your foreign income or gains if you don’t bring them into the UK, for example, you don’t transfer them to a UK bank account and keep them in your (in this case Canadian) bank account.
Can anyone confirm this? He is British and resident in the UK. I can't see that it is unremittable income. Should this be included in his return and be taxable as it is part of his worldwide income?

Best Answer


  • Jagz1234
    Jagz1234 Registered Posts: 13
    You are clearly wrong and have little understanding of the remittance basis.

    Your client is uk tax resident and British therefore he is uk domicile (technically it is England, Scotland etc domicile under common law).

    A uk domicile individual can not claim the remittance basis.

    What you need to declare the income on the foreign pages as taxable (but some foreign pensions are exempt under the DTT so you should check.)

    You need to apply the any foreign tax credit against the income and the credit is lower of the Canadian tax charged or the uk tax.

    I suggest you rectify your advice and consult the uk Canada dta immediately.
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