RPSM13101580 - Technical Pages: International: Double taxation agreement relief: Claims procedure: In-year claims

Claims procedure: In-year claims

A ‘tax equalised’ employee whose employer operates the modified PAYE arrangements (see RPSM13101590) will receive automatically (i.e. throughout the year) double taxation agreement relief on their personal contributions.

Other employees can obtain in-year relief on their personal contributions to an overseas pension scheme under a double taxation agreement (DTA) by writing to the HMRC office that deals with their affairs. The HMRC office can then arrange for double taxation agreement relief to be given during that tax year by way of a coding adjustment. If it is the first year of making such a claim the employee should state the:

  • DTA and article under which relief is being claimed,
  • name of their scheme,
  • amount of the contributions that they will make to the scheme in the tax year, and
  • whether or not the claim is for one year only.

In addition, the employee should:

  • state the SF74 reference number given to their scheme by Pension Schemes Services (PSS) when accepting it as corresponding to a UK tax-recognised pension scheme, or
  • provide a copy of a letter from PSS stating that their scheme has been accepted as corresponding, or
  • if relief is being claimed under the UK/USA DTA, confirm that their scheme is of a type specified in the Exchange of Notes of 24 July 2001 as being a pension scheme under Article 3.1(o) of that DTA, or
  • if relief is being claimed under the UK/Ireland DTA, confirm that their scheme is tax-approved, or registered for tax-approval, in Ireland.

In subsequent years the employee will not need to write to the HMRC office to receive in-year relief. The code allowance will be carried forward automatically unless HMRC was notified that it was to be claimed for the first year only.

Glossary ( RPSM20000000)

Home|Main Contents|Manual Contents

Previous Page|Next Page|Top|Menu