Tax on foreign income
Foreign income that's taxed differently
Most foreign income is taxed in the same way as UK income, but there are special rules for:
- pensions
- rent from property
- certain types of employment income
Pensions
You have to pay tax on pensions if you’re resident, or were resident in any of the 5 previous tax years.
You also pay tax on any foreign pension payments, including unauthorised payments like early payments and some lump sums.
Check with your pension provider to find out how you’ll be taxed.
Rent from property
You pay tax in the normal way on overseas property. But if you rent out more than one, you can offset losses against other overseas properties.
Certain types of employment income
You usually pay tax in the normal way if you work both in the UK and abroad. There are special rules if you work:
- on a ship or in the offshore gas or oil industry
- for the EU or government, or as a volunteer development worker