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UK2.4 Retiring in the UK

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UK2.4.1 UK taxation of pensions | United Kingdom

United Kingdom

UK2.4.1ÌýÌýÌýÌý UK taxation of pensions

For the exposure to UK income tax of:

  1. Ìý

    •ÌýÌýÌýÌý a UK resident who is taxed on the arising basis, see UK1.2.3

  2. Ìý

    •ÌýÌýÌýÌý a UK resident who is taxed on the remittance basis, see UK1.2.3

  3. Ìý

    •ÌýÌýÌýÌý a UK non-resident, see UK1.4.1 (which specifically considers the taxation of pension income of a UK non-resident)

For details of how to calculate UK income tax, see UK1.5.1.

Pension income

An individual may have multiple sources of pension income:

  1. Ìý

    •ÌýÌýÌýÌý UK state pension—a pension paid gross without deduction of income tax by the UK government based on the individual's national insurance contributions over their working life (ie UK social security contributions). The amount that is subject to UK income tax in the tax year is the amount accruing for the year, even if this has not been paid (ITEPA 2003, s 578). For details of the UK state pension, see the GOV.UK website

  2. Ìý

    •ÌýÌýÌýÌý UK private pension—this is a generic term for a UK pension income

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Web page updated on 28 Aug 2024 11:49