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German pension

Tax on German pension

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The German double tax treaty says:

Article 17 Pensions, Annuities and Similar Payments

1)Subject to the provisions of paragraph 2 of Article 18, pensions, other similar remuneration or annuities arising in a Contracting State and paid to a resident of the other Contracting State, shall be taxable only in that other State.

2)Notwithstanding the provisions of paragraph 1, payments which are made in accordance with the social insurance legislation of a Contracting State shall be taxable only in that State.

So if my client is in receipt of a state pension from Germany, then just to be absolutely clear - this is not taxable in the UK?  (where he is now fully resident).  Would you report it in the white space of the tax return?

 

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13th Aug 2019 15:36

Sorry, comment withdrawn

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13th Aug 2019 15:50

The reason for my concern is that previous accountant has been reporting it as taxable in the UK and I don't think it is, so we need to put in an overpayment relief claim.
German accountant has confirmed it is the equivalent of a state pension.
But it is always lovely when someone gives a little reassurance....

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By Mr_awol
14th Aug 2019 12:12

Paragraph 1 says it's taxable in the uk - unless paragraph 2 of Article 18 applies. Does Article 18 (government services) apply?

If not, then it's taxable in UK. However, Paragraphs 2 to 4 then seem to go on to over-ride Paragraph 1. Do any of paragraphs 2-4 apply?

If not, then it remains taxable in the uk and not in Germany. If any of them do apply, then perhaps not so much.

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