Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

Readers' forum: Near retirement

09 April 2019
Issue: 4691 / Categories: Forum & Feedback

Income tax treatment of a Spanish pension in the UK

My client is a Spanish citizen living and working in the UK who has just reached the age of 60 and has five years to decide whether to take his Spanish pension out as a lump sum or as an annuity.

He received no tax deduction in Spain where he spent most of his time when he made much of the contributions and under Spanish law he pays no tax there when he takes the money out.

What is the British tax position? If he is still resident when he withdraws the money does he have to pay tax on the full withdrawal despite not having had a deduction when he paid it in? Or can it be treated in the same way as an investment bond so that he is taxed as income only on the surplus?

Finally is there anything else that Taxation readers can...

If you or your firm subscribes to, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or '' for further assistance.

back to top icon