How do I claim a pension tax rebate if I have left the UK?
Firstly, we refer to the Double Taxation Treaty arrangements between the UK and your host country. You then need to take into account any issues around other income streams and if you complete a self assessment tax return.
To make sure everything is in order before you submit a pension tax rebate now that you’ve left the UK, there are a series of questions to work through; possibly leading to more detailed questions and evidence finding.
For example: In what country are you domiciled? What is your residency status (for tax purposes)? How many days will you be working in the UK? Does the country you live in have a Double Taxation Treaty with Britain?
Pension tax rebate process
The way in which a pension tax rebate claim is processed will depend on whether or not you meet self assessment criteria.
Self assessment
If you are already completing a UK tax return each year for other reasons (like UK rental income) any pension tax relief due will need to be incorporated on your tax return. This will require the relevant non resident pages to be completed.
An amendment can be made to previous tax returns that have not included your eligible pension tax relief for the last four tax years only.
By postal or online form
If you don’t need to complete a tax return a claim can be made through correspondence and or the completion of appropriate HMRC forms. What type of form and what to include in any correspondence will depend on your own set of circumstances. Different double taxation forms exist for some countries with other forms like an R43 may need to be completed.
Although claiming from abroad is a worthwhile exercise (especially if you’re backdating your claim) it’s often not an easy one. Professional advice is the way forward, particularly if you want to avoid HMRC fines for making a mistake in your paperwork.
