PSI17.2.5 - 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)

[PN17.5]

A pensioner who is resident abroad may be able to claim tax relief from income tax on his or her pension at source under a Double Taxation Agreement between the United Kingdom and the country of residence. Claims for exemption at source are dealt with by The Financial Intermediaries and Claims Office (FICO). Where the pensioner cannot claim relief under a Double Taxation Agreement nor under PSI17.2.4, he or she may be able to claim a proportion of personal tax allowances under section 278 ICTA 1988. This facility is available to British subjects and certain other persons resident abroad. Once again FICO are responsible for dealing with applications for this tax relief. Where a non-resident pensioner subsequently becomes resident in the United Kingdom, his or her pension will become liable to United Kingdom income tax.

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