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Tax on foreign income

5. 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: