Overseas pensions: tax relief for employers
When employers can claim tax relief on their contributions to an employee’s overseas pensions scheme.
When tax relief can be claimed
You can get tax relief on your contributions to an employee’s overseas pension scheme if they joined their pension scheme before they became a UK resident and either:
- they get migrant member relief
- their pension scheme is based in a country with a double taxation agreement with the UK that gives relief on pension contributions
You can continue to get corresponding relief if you received it on contributions to your employee’s overseas pension scheme between 1 April 2005 and 5 April 2006. Contributions must be made to the same overseas pension scheme to get tax relief.
You can only get tax relief on contributions you make to your employee’s pension if they’re allowable expenses.
How to claim
You can claim tax relief in the same way you would for contributions to a UK registered pension.
Record the payments you’ve made to your employee’s overseas pension in your accounts as an expense. You’ll get tax relief when this is deducted to calculate your taxable profits.