UK Pensions

An individual tax resident in Argentina (for example) should declare their pension income there, rather than in the UK as under the UK/Argentina double tax treaty, the country of residence has the exclusive right to tax pension income.

A separate form will need to be submitted to HMRC to reclaim any tax incorrectly withheld in the UK and to apply for future pension payments to be paid without the deduction of UK tax – and we can help you with this.

It is very important that this is considered as the country of residence will not allow foreign tax relief if the double tax treaty restricts the other country’s right to tax the income. If not addressed, this could result in tax being payable in both countries on the same income – something to avoid!

In addition, if the country of residence isn’t currently aware of the income, you may be subject to tax and substantial penalties when they find out. We would advise anyone in this position to speak to us as soon as possible.