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DTA taxation of State pension query

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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.

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By chicken farmer
25th Nov 2019 11:39

Look for the 'other income' article

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By David Heaton
25th Nov 2019 14:42

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...

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By PBH64
25th Nov 2019 16:42

Which DTA might help?

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Red Leader
By Red Leader
27th Nov 2019 15:02

Thanks for the replies. I will revert shortly when I've got a few more TRs out the door!

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Red Leader
By Red Leader
12th Dec 2019 13:43

I'm OP, finally picking up this thread again. I'd rather not mention the foreign country involved as it is rather specific.

Thank you for the link above. The link to the Digest of DTTs shows the following for the country involved:

Other Pensions/Annuities: Full Relief, but reference to a note that states “no relief on State Pension”.

Other Income Article: Yes, but reference to a note that states “applies only to third country income.”

Personal Allowances: Yes (N & R).

From this I conclude:
-UK State Pension is taxable in UK for the non-res client.
-UK private pension is not taxable in the UK.

I find the personal allowance situation unclear. The client is British but res in the foreign country.

I'd be grateful for your views.

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Red Leader
By Red Leader
16th Dec 2019 12:34

Any thoughts from the team?

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Replying to Red Leader:
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By chicken farmer
16th Dec 2019 13:33

You should read the actual DTA rather than relying on a 'digest'. It would help if you told us the country involved.

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Red Leader
By Red Leader
16th Dec 2019 14:25

The "Other Income" article reads as follows:

"Items of income of a resident of a contracting state which are not expressly mentioned in the foregoing Articles of this agreement shall be taxable only in that contracting state except that if such
income is derived from sources in the other contracting state, it may also be taxed in that other state."

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Replying to Red Leader:
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By chicken farmer
16th Dec 2019 15:06

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?

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