I recall reading somewhere that income from a UK government pension (i.e. an occupational pension from government service, not a State pension) has a 'special' status: it can be brought into and spent in Ireland without being subject to remittance tax (unlike other forms of income).
Is this the case?
And if so, can anyone refer me to the specific section of the legislation that provides for this?
Thanks
hi all Posting for my sister as she is really struggling to pay the correct tax on her uk pension and finding it difficult to get it sorted with the tax office. She is an Irish resident having moved back from the uk 5 years ago. She doesn't work in Ireland and has 2 uk pensions. One is the...
1. Under the IRL/UK Double Taxation Agreement (Article 17) the general rule is that a pension received by a resident of Ireland is taxable only in Ireland. (Meaning, if UK tax has been deducted, you should be able to reclaim it.)
2. But there's an exception for a pension paid out of UK public funds (central government or local government) to a resident of Ireland in relation to their past service as a UK public employee performing "functions of a governmental nature" (e.g. a pension to a civil servant or a local government officer). Such a pension is taxable only in the UK (DTA Article 18).
3. But there's an exception to the exception: if you get a pension of that kind, and you're an Irish citizen without also being a British citizen, then the pension may be taxed in Ireland.