Telephone: 01243 582926  Mobile: 07795671536  Email: baktax@aol.com 

If you have retired abroad and maintain a non-residence status, it may be possible to have your UK based pension from your former employer and your state retirement pension exempt from UK tax.

There are two ways this may be achieved:

Firstly, where your occupational pension has been earned whilst you have had substantial overseas service with that employer.

Secondly, where there is a clause contained in the double taxation agreement between the UK and the country where you reside. This may apply to both occupational and state pensions. The pensions will be declarable in your country of residence, however, this can be advantageous if you live within a low tax regime eg Cyprus where the tax rate on pensions is only 5%.

Another advantage is where you may have other income in the UK eg from letting property. Rather than having your tax allowances absorbed by your pension, they will become available to reduce your tax liability on your other UK income.

Whether you have recently started to receive your pension or have been doing so for a number of years, I will be pleased to review your situation to see if you have a valid claim. I will also look into the possibility of obtaining a tax refund for earlier years, where applicable. You should however, take local tax advice on your position where you reside.