Taxation on overseas pension

expatasia

If you live permanently again in the UK & receive a standard old-age pension from a non-EU country like South Korea would the pension get taxed in Britain/Korea or both? Is it any different if it's a private pension? Thanks.

CTA_2

expatasia wrote: »

If you live permanently again in the UK & receive a standard old-age pension from a non-EU country like South Korea would the pension get taxed in Britain/Korea or both? Is it any different if it's a private pension? Thanks.

If you are UK resident, you are taxable on worldwide income and gains. A SK pension would be included as income.

Whether or not this is taxable in SK, you are unlikely to find the answer here. You would need to consult a SK professional.

Should you suffer SK tax on the pension, then it is likely that double tax relief would be available in the UK.

ceeforcat

One can also deduct 10% of the value of your overseas pension meaning that only 90% of it is taxable in the UK. Every little helps.

expatasia

CTA wrote: »

Should you suffer SK tax on the pension, then it is likely that double tax relief would be available in the UK.

What % of relief are we talking about?

jennifernil

Normally either the tax paid abroad, or an amount equivalent to what would have been due here, whichever is the lesser of the two.

See here for how you declare the income, the notes explain what you can claim.......

http://search2.hmrc.gov.uk/kb5/hmrc/forms/view.page?record=EZbpjD2hV2M&formId=3188

However, if there is a treaty between UK and SK, you may have to claim exemption from tax in SK.

The treatment of government pensions and private pensions can be different.