The following Employment Tax guidance note by Tolley provides comprehensive and up to date tax information covering:
This guidance note sets out thepart of thetax regime associated with overseas pensions. It looks at how those rules operate in relation to those individuals who decide to live in theUK and continue to make pension contributions to theoverseas pension scheme of which they were a member before their arrival in theUK.
The current treatment of such contributions evolved from theprovisions that applied in theperiod to 5 April 2006. This guidance note summarises theearlier provisions before looking at thecurrent rules in more detail.
Before 6 April 2006, a non-UK domiciled employee who was in receipt of earnings from overseas whilst working in theUK for a non-UK employer could remain as a member of an overseas pension scheme.
This was allowed so long as HMRC accepted that theoverseas scheme ‘corresponded’ to what was then known as a UK ‘approved’ scheme. In such circumstances, tax relief in theform of ‘corresponding relief’ was available in respect of contributions made to that scheme.
In broad terms, an overseas scheme ‘corresponded’ with theUK regime if it:
From 6 April
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