Foreign pensions are only 90% taxable. HMRC guidance (Foreign Notes, page 7) for the Foreign Pages of a paper return is to put the full amount into column B ('Amount of income arising or received before any tax taken off') and then put that amount minus the 10% deduction into column F ('Taxable amount').

However this cannot be done with the HMRC's own online service. There are separate columns for the 'amount of income' and for the 'taxable amount', but it will only accept input for i) 'foreign tax', ii) 'special withholding tax', or iii) 'foreign tax credit relief', and the 10% deduction is not one of these.

There seems to be no way to reduce the 'taxable amount' from the 'amount of income' without invoking one of the above three options.

Does anyone know the correct way to proceed?

Thanks for any input.

  • In my experience the online filing forms are limited to common cases and situations. If you can't find where to enter a number it usually means you have to file a paper return. – Jim Garrison Jan 15 '17 at 1:52
  • Fair enough, although I can't imagine a foreign pension is an uncommon situation in the foreign pages. There must be lots of people who qualify for this deduction. – CC8899 Jan 15 '17 at 18:11

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