If you are a UK resident receiving a pension from overseas, you typically need to declare it on your UK tax return. This guide explains the general rules.

As a UK tax resident, you are taxed on your worldwide income, which includes most pensions from overseas sources.

How is it taxed?

You should report your gross foreign pension income on the 'Foreign' (SA106) pages of your Self Assessment tax return. Usually, 100% of the pension is taxable, and it will be added to your other income to determine your overall tax bill.

However, in some specific cases, a different rule applies. For certain types of foreign pensions where you have not received UK tax relief on the contributions, only 90% of the pension is taxable in the UK.

Double Taxation Treaties

The UK has tax treaties with many countries. These treaties determine which country has the primary right to tax the pension. In most cases, the treaty states that the pension is only taxable in your country of residence (the UK). However, some government service pensions may only be taxable in the country they are paid from. If foreign tax has been paid, you can usually claim a Foreign Tax Credit to avoid being taxed twice.

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