Non resident pension tax relief

If you are not living in the UK and are paying tax on a UK pension you could be owed a non resident pension tax rebate.

The UK tax office has agreements in place with many countries meaning tax should either:

  • Not be paid at all in the UK on UK pension income.
  • Should only be paid at a reduced rate.

A claim can be backdated for the last four tax years so if you have been paying tax when you didn’t need to you could be owed a tax rebate for the last four years. In addition if you are eligible tax will not have to be paid on any future pension income from the UK.

Our non resident pension tax relief guide highlights what you need to know if you are living outside the UK and paying UK tax on your pension income.

Am I entitled to non resident pension tax relief?

It depends on the country or countries you have been living in and the type of pension income you receive. There is a very long list detailing which countries allow for tax relief on pension income in the UK and not all countries are the same.

You can use our double taxation table for pensions to which shows an A-Z list of countries and what tax relief is available.

What types of pensions are covered?

Most types of pension income are eligible including government, state, and lump sum payments.

I have cashed in my pension can I claim?

Yes, subject to the type of pension lump sum and the country you have been living in.

Other reasons why you could have overpaid tax:

  • You have stopped employment within the last four tax years.
  • You are paying tax on rental income in the UK.
  • You are working outside the UK and paying UK income tax.

How do I claim non resident pension tax relief?

How you claim back non resident pension tax relief will depend on your circumstances. If you complete a self assessment tax return in the UK the relief will have to be claimed back by completing the necessary section on your tax return.

If you don’t complete a self assessment tax return in the UK you will normally have to complete HMRC form R43 and post it to HMRC at:

Pay As You Earn
HM Revenue and Customs
United Kingdom

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More useful guides for UK non residents:

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