§ Mr. FoulkesTo ask the Chancellor of the Exchequer (1) what regulations govern the payment of taxation on pensions paid from abroad to residents of the United Kingdom;
(2) whether people living in the United Kingdom who are in receipt of pensions from overseas are liable to taxation.
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§ Mr. DorrellThe general position is that those who are resident for tax purposes in this country are liable to tax on pensions which arise overseas, subject to a statutory deduction of one-tenth. In some cases, for example those who are not domiciled in this country, the one-tenth deduction does not apply and the liability is determined by the amount of the overseas pension which is remitted to this country. Certain overseas pensions, for example German and Austrian pensions payable to victims of Nazi persecution, are statutorily exempt from tax. The relevant legislation for these provisions is in sections 19, 58, 65, 68 and 330, Income and Corporation Taxes Act 1988.
Relief may also be due under the terms of a double taxation agreement. This will depend on the precise terms of the agreement between the United Kingdom and the country from which the pension is paid.
§ Mr. FoulkesTo ask the Chancellor of the Exchequer if he will state the number of pensioners in the United Kingdom in receipt of pensions from the United States of America; and what is the total sum of money involved.
§ Mr. DorrellThe information requested is not available.