A pension may be liable to income tax in the United Kingdom
under domestic law. However, if the pensioner lives abroad a charge
may also arise in the country of residence. In these circumstances
you should look at the relevant double taxation agreement (DTA) to
establish which state has primary taxing rights.
The following guidance is sketched in the broadest possible terms and is no substitute for:
The government service article applies both to civil servants and local authority employees. Pensions payable for government service are usually taxed in the paying state and are exempt from tax in the state where the pensioner is resident.
Other pensions are usually taxed only in the country in which the pensioner is resident. The United Kingdom gives up its taxing rights under the terms of the relevant DTA.
The state retirement pension is covered under articles dealing with “other income” in most DTAs. Taxing rights usually go to the state in which the pensioner is resident.