Foreign pension tax credit relief

Foreign pension tax credit relief

Didn't find your answer?

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)

Please login or register to join the discussion.

avatar
By paras007
21st Dec 2014 12:44

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?

Thanks (0)
By Ford
24th Dec 2014 21:46

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

Thanks (0)