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Pensions In Cyprus

Tax issues You will not be liable to UK tax on your UK pension if you live in a country which has a double taxation agreement with the UK. Under most such agreements pensions are only taxed in the country where you are resident. Where that is the case and you make a claim for relief, the Inland Revenue will authorise payment of your pension without deduction of tax. If there is no relief under a double taxation agreement, tax will normally be deducted from your pension before it is paid. Government-sponsored schemes such as the civil service pension will be subject to the UK taxation regime even if you are abroad. Jonathan Springroach, a financial adviser with Towry Law International, says: "The government scheme remains taxed in the UK. When you are filing your tax return in the new country you need to inform local tax authorities not to aggregate tax on to local tax returns. The same applies for state pensions. "For non-government schemes, you must apply to the foreign tax office in the UK to get your pension paid gross. You will need to get a stamp from the local tax office in the new country to say you have got it registered." Springroach also advises that if you are taking a lump sum from a UK pension, you should draw it at the time you are UK tax resident. In some countries you could end up with a tax liability. Useful contacts Pensions and Overseas Benefits Directorate, Tyneview Park, Whitley Road, Newcastle upon Tyne NE98 1BA. Tel 0191 203 0203 Pensions Advisory Service, 11 Belgrave Road, London SW1V 1RB. Tel 020 7233 8080, opas.org.uk

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