Transfer Overseas Pension to UK

You may want to transfer your overseas pension to the UK, there are a number of options available.
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Can I transfer my overseas pension to a UK scheme?

Depending on the terms of your pension scheme, it may be possible to transfer your overseas pension to a UK scheme.

The rules about how much you will be taxed and when you will receive your pension can differ from country to country,

Some overseas retirees find it more financially viable to have their pension paid into a bank account in their home country and then to simply transfer their funds into a UK account.

Transferring a US pension to the UK

The majority of pensions in the US are deferred pension schemes. This means that while working, the pension holder paid into a scheme through their company and then when they retire, the pension provider gives them income for their retirement.

Similarly to the UK, the income received as a pension is taxable and unfortunately, if you want to transfer your US pension into a UK pension, you may be subject to tax in both countries.

However, it may be possible to avoid double taxation. Taxes paid in UK on pension income are applied as a foreign tax credit against tax owed on the same income in the US.

Transferring a pension from a European country to the UK

It may be possible to transfer your European pension into a UK scheme but before you do, always consider the tax implications and charges that you may be expected to pay after transferring your funds.

Pension payments are taxed as earned income in the UK, so a pension transfer from a European country to the UK could be taxed twice – once under the UK PAYE system and then again in the originating country.

However, most European countries, has a Double Taxation Agreement (DTA) with the UK.

This means that if you transfer your pension from a European country to the UK, you may be able to reclaim the tax paid in the originating Country.

Here is the list of the UK’s double taxation agreements.

State pensions in European countries are an exception to this rule you may not be able to transfer your state pension to the UK.