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HMRC internal manual

Employment Income Manual

From
HM Revenue & Customs
Updated
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Exemption of certain pensions paid to non residents

Part 9 Chapter 18 ITEPA 2003

Certain types of pensions are exempted from tax when paid to recipients who are not resident in the United Kingdom by the provisions in Chapter 18 ITEPA 2003 (Sections 647 to 654). These pensions are listed below (all references are to ITEPA 2003):

  • Section 648 - pensions paid from the Central African Pension Fund
  • Section 649 - pensions paid out of a fund established in the United Kingdom by a Commonwealth government in respect of service under that government
  • Section 650 - pensions paid under the Oversea Superannuation Scheme
  • Section 651 - pensions paid under Section 1 Overseas Pension Act 1973
  • Section 652 - certain pensions paid under the authority of the Overseas Service Act 1958
  • Section 653 - pensions paid out of the Overseas Service Pension Fund
  • Section 654 - pensions paid under the authority of the Pensions (India, Pakistan and Burma) Act 1955.

Any questions about these exemptions should be referred in the first instance to Public Departments (Crown Agents) who deal with most cases that are affected.

Any part of a pension within Section 651 or Section 654 representing statutory increases made under the authority of the Pensions (Increase) Acts will not qualify for exemption.