Paying tax twice on foreign pension

Cmas

Hi, my first post so I hope this is in the right place! I recieve a widows pension from the Netherlands. I am British but was married to a Dutch man. I have realised that I am paying tax on it both here and in the Netherlands which doesn't seem right but I don't know how to sort it. Any thoughts?

Pennywise

Cmas wrote: »

Hi, my first post so I hope this is in the right place! I recieve a widows pension from the Netherlands. I am British but was married to a Dutch man. I have realised that I am paying tax on it both here and in the Netherlands which doesn't seem right but I don't know how to sort it. Any thoughts?

Put the gross on the "foreign income" section of the tax return and you can also enter the tax deducted abroad in the foreign section. Then it will give credit for the overseas tax paid.

EdSwippet

Pennywise wrote: »

Put the gross on the "foreign income" section of the tax return and you can also enter the tax deducted abroad in the foreign section. Then it will give credit for the overseas tax paid.

I don't think that's going to fly. Article 17 paragraph 1 of the UK/Netherlands tax treaty suggests that the pension should simply not be taxed at all by the Netherlands when paid to a UK resident:

ARTICLE 17
Pensions
(1) Pensions and other similar remuneration (including pensions provided under a social security system and annuities) paid to a resident of a Contracting State shall be taxable only in that State.

HMRC won't allow foreign tax credits where the foreign tax is relieved under a double-tax agreement.

The OP should probably investigate ways to recover the tax paid up to now to Netherlands, and see about taking steps to ensure that no more is paid in future. That said, I have no idea at all on the mechanics of how taxes and tax filings work in the Netherlands ...

sheramber

Is this a state pension or a private pension?

Cook_County

If the treaty exempts the pension from Netherlands tax, you will need to reclaim any tax over-withheld in the Netherlands.