Agreement good news for residents on UK pensions

Tuesday 7th April 2009, 3:00PM BST.

JERSEY residents will no longer be paying tax on their UK pensions to the UK Revenue, once the new Tax Information Exchange Agreement with the UK comes into force.

Currently people living in Jersey with UK pensions have to pay tax on those pensions at UK rates – up to 40% – to the UK tax authorities.

But under the new agreement the existing Double Taxation arrangements between Jersey and Guernsey will be extended to cover pensions.

Jersey’s Income Tax Comptroller, Malcolm Campbell, said: ‘Those who are resident in Jersey and who have a pension from the UK will in future be taxed in Jersey and pay tax to the Comptroller.’

• Picture: Income Tax Comptroller Malcolm Campbell

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1
peter taylor

April 11, 2009 at 12:47 am

But what about people the other way round – i.e. those who live in the UK but pay tax to Jersey on their pensions derived from Jersey ?

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2
B McNeela

April 18, 2009 at 2:41 pm

Looks like it should work both ways:

See:
http://www.hmrc.gov.uk/international/jersey-eol.pdf

4. After paragraph 5 of the 1952 Arrangement there should be inserted the following paragraph:
“5A. Subject to the provisions of paragraph 6, pensions and other similar remuneration paid to an individual who is a resident of one of the territories shall be taxable only in that territory.”

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