I have left the UK, can I claim tax relief on my pension?

If you have left the UK, you can claim tax relief on your pension in certain circumstances. Sometimes this means that you don’t have to pay UK tax on a UK pension, or can take advantage of a lower rate. This applies to most pension types; state pensions, government pensions and cash lump sum withdrawals. Pension tax relief can be backdated for four UK tax years and making a claim can mean you pay less or no UK tax on your pension income in the future.

Double taxation and your UK pension

Your eligibility is dependent on the Double Taxation (DT) Treaty that exists between the country you are living in and the UK. All of these treaties are negotiated on an individual basis and have different terms. You can use our table of the UK’s current DT treaties’ arrangements. This lists each country alphabetically and notes whether tax relief is applicable for government pensions, other pensions and/or annuities and Personal Allowances.

Treaties are added and amended all the time on GOV.UK’s Tax Treaties page.

Other pension tax rebate reasons if you have left the UK

There are other factors which affect your ability to claim a non resident pension tax rebate:

• Incorrect tax code. If your British tax code is not correct, then you are paying either too much or too little income tax. This often happens with people who cash out a lump sum from their pension. It can end up being emergency taxed by your pension provider, which means your Personal Allowance entitlement hasn’t been part of the overall calculation.
• Other income streams. Any income, such as working abroad or rental income on property you own in Britain, impacts on your overall financial position when you are applying for a non resident pension tax rebate.
• Self assessment tax return. If you already submit self assessment tax returns for another reason, like being a non-resident landlord, then this will need to be thought about as you apply for a pension tax rebate. The non resident pages of your self assessment tax return will need be completed which details your residency status for tax purposes.

Our leaving the UK tax rebate services is here to support UK expats reclaim the UK pension tax relief they are entitled to. Contact our pension tax experts today by filling in our online contact form, emailing [email protected] or calling +44 (0)1228 520477.