IR20 - Residents and non-residents liability to tax in the United ...

This guidance does not apply from 6 April 2009. The guidance it contains is replaced by the
guidance provided in HMRC6 – Residence, Domicile and the Remittance Basis. It is kept
available for those people who need to make reference to IR20 for their tax affairs before
5 April 2009.
5.20 Scope of liability to income tax on individuals receiving pensions
Residence status and domicile
Resident and ordinarily
resident, and domiciled
Resident and ordinarily
resident, not domiciled
Resident but not ordinarily
resident, domiciled
Resident but not ordinarily
resident, not domiciled
Not resident
1. Less 10% deduction.
Paid by on behalf of a person
in the UK
Liable
Liable
Liable
Liable
Liable 3,4
outside the UK
(overseas pension)
Liable 1
Liable but may claim
the remittance basis
(paragraph 5.12) 2
Liable but may claim
the remittance
basis 2
Liable but may claim
the remittance basis
(paragraph 5.12) 2
Not liable
2. If a claim for the remittance basis is made then the 10% deduction referred to at 1 is not available. Up to the year
ended 5 April 2008 the remittance basis cannot be claimed for a pension arising in the Republic of Ireland but the
10% deduction is available. If the pension is from the Irish Government you are taxable only if you are a UK national
without also being an Irish national.
3. See Chapter 9 about possible relief under a double taxation agreement.
4. See paragraph 5.15 in the case of UK social security benefits such as National Insurance Retirement Pension.
IR20 28
HMRC 03/09