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Tax on SA Pension?

GuestPoster301

From March I'll be UK resident for 100% of the time, but my pension will be paid out in SA.  Do I pay tax in SA or the UK and where and how do I start? 
Really confused so please advise?

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Cynic

Hi again.

You are assessed for taxes based on where you are resident; so if you live in the UK, you will be assessed for taxes there.

There is a tax treaty in place between UK/SA, Article 17 of which covers state pensions, says it will be taxed in South Africa; you can read the whole thing here ().

I suspect it will be taxed at source.

Hope this helps.

Cynic
°µÍø½ûÇø Team

GuestPoster301

Many thanks.  That's a shame as I'll be taxed at a far higher rate than in the UK.

Cynic

GerardCannoo wrote:

Many thanks.  That's a shame as I'll be taxed at a far higher rate than in the UK.


Sorry about that; it may be worthwhile speaking to a SA tax consultant to see if you can offset any taxes against expenditure.

GuestPoster301

Hi
The Tax Guru said he will research it. It's not a government pension though. it was a provident fund, now a living annuity since I've retired...
Any thoughts?
Gerard

Cynic

Then it's not a Government pension.  You'll have to declare it to HMRC in the UK, but you can use your annual tax allowance against any tax.  If the SA taxman does dip his fingers in, then HMRC won't tax you again on that sum.

GuestPoster301

Many thanks.
Just a shame I cannot only pay in the UK as it will be a lot lower. 
They find ten ways to take no matter what!  :-(
Thanks for the advice.