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Old 13th Nov 2010, 15:11
  #42 (permalink)  
RAFEngO74to09
 
Join Date: Sep 2010
Location: Nevada, USA
Posts: 1,639
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UK Tax On Government Sourced Pensions

Yeller Gait

Everything you need to know is on the HMRC website. Look for the Dual Taxation Agreement (DTA) between the UK and the country you are now a resident of. In the case of government sourced pensions (eg Armed Forces), you have to pay tax on it in the UK unless stated otherwise in the DTA. In my case (USA), the UK-USA DTA states that you may cease to pay tax on UK government sourced pensions (and pay in the US instead - clearly advantageous) once you have become a citizen of the US (normally takes a minimum of 5 years). I have checked with HMRC and confirmed that it is not necessary to also renounce UK citizenship to do this and that one would also still continue to receive the UK senior citizen pension in due course (provided the requisite contributions had been maintained).
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