Tax deducted at source on a foreign pension | AccountingWEB

Tax deducted at source on a foreign pension

I have a personal tax client who receives a pension from Holland and the tax deducted at source is approximately 33%. My client is a basic rate tax payer so my initial reaction was that he could take credit for this "overcharge" on his tax return. I have fed the figures into our software and the amount recoverable is not as high as I expected (i.e as if it had been a uk pension with 33% deducted). I am aware that Foreign Tax Credit Relief can complicate these matters but is it normal to not get full relief on the tax deducted from a foreign pension? [in terms of numbers (which are not big) the client gets a 3,000 gross pension with 1,000 deducted at source. My naive calculation concluded that he should only pay 600 so we can recover 400 through the TR. However our Taxcalc software is not bearing this out when entered as a foreign pension.]
I suspect my client will need to make contact with his Dutch pension provider but in the meanwhile any input, views, titbits on the calculations would be appreciated.

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Article 17 of the UK/Netherlands treaty says

ACDWebb |
ACDWebb's picture

I agree - your client needs

eastangliantaxadvisor |
eastangliantaxadvisor's picture

Acdwebb/mawallace thank you

brownbowl |
brownbowl's picture