PSI17.2.4 - Tax Treatment of Approved Schemes and Payments by Approved Schemes: Taxation of Payments to Scheme Members - Pensions - Pensioners Resident Abroad

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

[PN17.4]

There are no general exemptions from income tax under the Taxes Act for pensioners resident overseas. The Income Tax (Employments) Regulations 1973 do, however, preclude the operation of PAYE in respect of a pension arising wholly from an employment carried on abroad and payable to a non-resident. In practice this is extended by concession to apply to pensions where the last 10 years’ service for which the pension is paid was abroad, or half the total service being pensioned and at least 10 of the last 20 years’ service were both abroad. This concession is dealt with by the scheme’s Pension District (see EP9366).

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