RPSM13201510 - Member Pages: International: Double taxation agreement relief: What is double taxation agreement relief?

What is double taxation agreement relief?

Double taxation agreement (DTA) relief confers UK tax relief on contributions made to an overseas pension scheme. Whether such relief is available will depend on the specific provisions of the DTA that the UK has made with the country in which the overseas pension is established. Broadly speaking, the effect of DTA relief is to treat a member of a pension scheme established in the other country who comes to work here like a member of a UK registered pension scheme (see RPSM13101510).

Generally, a DTA works both ways, by conveying tax privileges bilaterally. So, for example, where a DTA would allow UK tax relief to be granted on contributions to a pension plan in another country, it would be normal for contributions made by a member of a UK registered pension scheme while working in that same other country to be treated in the same way as contributions to a locally established pension scheme.