UK Pensions

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Understanding How Your UK Pension Is Taxed When You Live Abroad

If you live outside the UK or are planning to retire abroad, understanding how your UK pension is taxed as a non-resident is essential. Whether you receive the UK State Pension, a private or workplace pension, the tax rules can be complex and often depend on Double Taxation Agreements (DTAs) in place with your country of residence.

We can help navigate your UK pension tax position with clarity and confidence.

What can we do for you?

UK State Pension

In some countries the UK State Pension may only be taxed locally where you live, whilst in others it may be taxable in both countries with foreign tax relief available.

Private or Workplace Pensions

The UK pension provider will typically deduct UK tax at source. However, many non-residents can eliminate this withholding tax by applying for the correct treaty relief.

Temporary Non-Residence

Special rules may apply if you leave the UK, take pension withdrawals while abroad, and then return within a relatively short period; tax treatment can change retroactively.

Get Expert Advice on Your UK Pension

Your pension may be one of your most valuable assets, and understanding how it is taxed when you live overseas is essential to maximise your wealth.

What our clients say

Our clients consistently rate us highly on Trustpilot, praising our clear advice, responsive service, and personable approach. Our reviews reflect our commitment to delivering exceptional UK tax support that you can trust.

Trustpoilot

Made the Whole Process Very Easy

Made the whole process very easy, answering questions and explaining everything clearly. We will not hesitate to use them again and highly recommend.

Chris (Australia)

Swift, Clear and Greatly Appreciated

After having issues with my previous company I was recommended Jose at UK Tax Returns. The entire process was swift and done quickly, everything that was needed from my end was clearly communicated. Appreciate it!

Patricia (GB)
Sound Tax Advice for a Dual National

Sound tax advice for a dual national. I discovered UK Tax Returns through Trustpilot after realising that it was extremely difficult to find a tax professional who understood the complexities of my situation as an Australian expat.

Michelle (Australia)

Frequently Asked For Questions Double Taxation Agreements

Do I pay UK tax on my pension if I live abroad?
Is the UK State Pension taxed for non-residents?
Why is my UK pension provider deducting tax when I’m non-resident?
Can I reclaim UK tax deducted from my pension while living abroad?
Will I still qualify for UK State Pension increase if I live overseas?
How do I prove foreign residency to HMRC?

Why Use A Tax Advisor?

Failure to correctly appraise the UK tax position on your pension can be a costly mistake. If you are UK tax exempt on your pension income under a Double Taxation Agreement, then you will not be entitled to claim a foreign tax credit overseas for the tax already suffered in the UK.

This is because if a source of income happens to be exempt from tax, then you must apply for the exemption and you can not simply chose to just claim an overseas credit instead.

Professional guidance offered by UK Tax Returns gives you clarity, peace of mind, and confidence that your pension income is being managed in the most tax-efficient way possible.