We have acted for a few years for a UK resident client with an Irish employers pension, On enquiry, & after some research, we have agreed with HMRC that no relief is available in the UK for the Irish tax deducted at source. After some effort, a tax refund has been obtained in Ireland & the (almost) equal liability paid in the UK.
From our research it appeared that this was a unique position relating to Irish pensions.
We have recently been approached by three sisters to act on behalf of their late mother's estate. It is clear that there is a substantial amount of tax due on their late mother's income for many years. She had been a UK resident throughout the relevant period & no tax returns had been filed. We have submitted some provisional figures to HMRC & are moving toward a settlement. However, HMRC are threatening to deny credit for the tax deducted in Switzerland on her late husband's Swiss employers pension.
We can find no justification for this & HMRC have tried to refer us to some meaningless "leaflets". We have therefore continued to challenge HMRC on this matter.
Any thoughts or guidance? A cross reference to legislation or Double Tax agreements, would be useful.
Many thanks
Alan
Replies (2)
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Please explain
Please expand on your statement "From our research it appeared that this was a unique position relating to Irish pensions."
What research did you carry out that led you to this conclusion?
10% Deduction
Have you read this http://www.hmrc.gov.uk/manuals/eimanual/eim74500.htm
Appart from that you need to review the DTA with Ireland and HMRCs guidance here http://www.hmrc.gov.uk/manuals/dtmanual/DT9850+.htm which seems to say taxable in the UK as normal subject to the 10% deduction.
Ask HMRC for statutory references rather than leaflets!
Ford