Guernsey pension for UK resident

crandall · 7 June 2007 at 11:15AM

How does the agreement between Guernsey and UK work with regard to payment of tax on an occupational pension when 20% is deducted at source in Guernsey? The Income Tax office have offered 3 alternative options for filling in the self assessment form. I am desperate to get this sorted once and for all. Please help.

Toni_Tax · 7 June 2007 at 2:03PM

Off the top of my head - and how all foreign pensions I have seen work is that the pension is taxable in the UK so you work out the tax in the UK as if the pension had been paid to you gross without deduction of any tax, and then you deduct the foreign tax paid already.

Hope that helps.

Cook_County · 7 June 2007 at 3:39PM

The answer depends on whether or not you are domiciled in the UK. So...where are you domiciled?

crandall · 1 May 2008 at 7:59AM

Sorry for the delay in responding - I didn't understand how this board worked! I am domiciled in the UK nowadays. Another problem is would I qualify for the 10% reduction for pensions from abroad. Don't really understand why they would be so kind as to give me this (or am I cynical?!) I will check my replies if you could kindly give me your advice - another form lies awaiting completion for this year!!!!