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Overseas resident

Overseas resident

I have a client who has been resident overseas for some years and has not been required to file a Tax Return.

In the year 2011/2012 she started receiving Rental Income in the UK which obviously has to be declared on a Tax Return

She is also in receipt of a UK state pension.  Does this require to be declared on the Tax Return?

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25th Dec 2012 13:27

It depends upon source of the pension

Generally, if the pension has arisen through a UK government or public sector occupation then it will remain taxable in the UK.

For non-state sector pensions it can probably received free of UK tax, but will be subject to relevant taxation in the country in which your client is now resident. In certain places there are special rules or tax rates for pension income remitted from abroad (Malta and Cyprus are two examples that I am aware of historically, although I'm not sure if rules have been changed during the current crisis).

In addition, you should check any DTT (Double Tax Treaty) between the UK and your clients country of residence as this may provide additional guidance.

Without knowing the source of your clients pension and your clients tax residence status (both in the UK and elsewhere) it is difficult to give a more detailed answer.

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