Foreign Income 07 - Overseas pensions, social security benefits and royalties etc

Select the checkbox if at any time during 2020 to 2021 tax year you received a pension or social security benefits from overseas. You should also include any pensions or annuities paid in the UK but on behalf of an overseas pension provider who is outside the UK. Also include lump sum payments from overseas schemes that are taxable as pension income. Under the majority of DTAs, a pension paid in consideration of a past employment will only be taxable in the country of residence. However, some DTAs provide that pensions may be taxed in the country where the pension arises and it's important to check the relevant DTA prior to making a claim for FTCR.

If you've a pension that is not taxable in the UK because of a DTA, give full details of the pension's payer, pension and relevant DTA in the 'Any other information' section.

Don’t include pensions or lump sums from overseas pension schemes here; you should include these in the ‘UK pensions, annuities and other state benefits received’. You should also include any flexible draw down taken from an overseas pension scheme during a period of 'temporary' non-residence. Helpsheet 346 Pension savings tax charges - guidance for members of overseas pension schemes explains what counts as a period of 'temporary' non-residence.

Some overseas pension schemes are registered in the UK. Pensions from these schemes shouldn't be entered on the Foreign pages but in the UK pensions, annuities and other State benefits received section of your Tax Return. The scheme administrator will tell you whether this applies to your pension scheme.

If you expect to start receiving a pension or annuity before 6 April 2021, enter details of the provider and annual amount in the 'Any other information' field at the end of the 'Fill in your return' section. This will help HMRC get your PAYE tax code right for next year.

It's possible that you have a pension that isn't taxable in the UK because of the terms of a double taxation treaty. To claim that your foreign pension isn't taxable in the UK, enter full details in the 'Any other information' field at the end of the return and identify the relevant double taxation treaty on which you're relying. Go to Double Taxation Treaties: non UK resident with UK income.

Arrears of foreign pension

If the amount of pension you received in 6 April 2020 to 5 April 2021 tax year included payments which relate to an earlier tax year you can claim to spread those payments back to the year they relate to as long as the pension is taxed on the arising basis. If you think this might be to your advantage, ask HMRC or your tax adviser.

For more information on

• foreign pensions which are wholly or partly exempt from UK tax
• social security benefits, a list of foreign benefits to exclude that correspond to UK benefits, follow the link for Foreign Notes

Include all other foreign benefits. If you're unsure about whether a benefit should be included or not, ask HMRC or your tax adviser.