UK employment pension, but living abroad

dave_ave

I wonder if anyone knows the answer please?

I currently live and work in the UAE. I am thinking about drawing my UK DB pension.

If the pension is paid in the UK, would I have to pay income tax on it?

Thanks.

bostonerimus

Is there a UAE/UK tax treaty?

xylophone

Is there a UAE/UK tax treaty?

http://www.withersworldwide.com/news-publications/uk-%E2%80%93-uae-double-tax-treaty-now-in-force-%E2%80%93-what-you-need-to-know--2

seems relevant.

bostonerimus

xylophone wrote: »

http://www.withersworldwide.com/news-publications/uk-%E2%80%93-uae-double-tax-treaty-now-in-force-%E2%80%93-what-you-need-to-know--2

seems relevant.

Most tax treaties will contain an article that gives the taxing authority on pensions to the country of residence.......I haven't read the UK/UAE treaty, but if it follows the usual rubric the UK pension paid to a UAE resident will only be taxable in the UAE.

TBC15

Any idea what the situation is with Oman?

dave_ave

bostonerimus wrote: »

Most tax treaties will contain an article that gives the taxing authority on pensions to the country of residence.......I haven't read the UK/UAE treaty, but if it follows the usual rubric the UK pension paid to a UAE resident will only be taxable in the UAE.

and if income is not taxed in the UAE, I should not pay income tax on the pension in the UK?

EdSwippet

bostonerimus wrote: »

... I haven't read the UK/UAE treaty, but if it follows the usual rubric the UK pension paid to a UAE resident will only be taxable in the UAE.

Here you go: UK/United Arab Emirates Double Taxation Convention

ARTICLE 17
Pensions
1. Subject to the provisions of paragraph 2 of Article 18, pensions and other similar remuneration paid to a resident of a Contracting State shall be taxable only in that State.

ARTICLE 18
Government Service
...
2. (a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
(b) However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of, and a national of that State.

bostonerimus

EdSwippet wrote: »

Here you go: UK/United Arab Emirates Double Taxation Convention

Yep, it's a very standard formulation. If the OP is a UAE tax resident they should file a DT-Individual to get UK tax relief on the UK pension and obviously pay any tax due on it in the UAE.

https://www.gov.uk/government/publications/double-taxation-treaty-relief-form-dt-individual

Joey_Soap

TBC15 wrote: »

Any idea what the situation is with Oman?

I can confirm Sultanate of Oman has a tax treaty with the UK. Here we go - https://www.gov.uk/government/publications/oman-tax-treaties HTH.

TBC15

So could the OP transfer it all to a SIPP and immediately draw it all out free of UK tax? Sounds too good to be true.

bostonerimus

TBC15 wrote: »

So could the OP transfer it all to a SIPP and immediately draw it all out free of UK tax? Sounds too good to be true.

See here

http://www.arabianbusiness.com/uk-uae-treaty-means-uk-pension-free-of-income-tax-669295.html