Non res client has UK State pension, private pension and UK property income. Clearly the UK property income is taxable in the UK. The DTA does not refer to State pensions, only to:
"pensions and other similar remuneration paid in consideration of past employment to a resident of a contracting state and any annuity paid to such a resident shall be taxable only in that State."
a) Is the UK State pension taxed in the UK? The DTA appears to be silent. Is there usually a more general article in a DTA that prescribes?
b) How does this affect the calculation of the claim for personal allowance? I always find that aspect/calculation confusing.
Replies (9)
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They key question is which DTA applies. Some countries (eg, Netherlands) accept that the UK state pension is within the pensions article, while others (eg, Italy) deal with it under the 'Other Income' article.
Look up the relevant treaty here: https://assets.publishing.service.gov.uk/government/uploads/system/uploa...
You should read the actual DTA rather than relying on a 'digest'. It would help if you told us the country involved.
So;
"Items of income of a [resident of Ruritania] which are not expressly mentioned in the foregoing Articles of this agreement shall be taxable only in [Ruritania] except that if such income is derived from sources in [the UK], it may also be taxed in [the UK]."
What's the problem?