Income Tax (Earnings and Pensions) Act 2003 section 575

Taxable pension income

Section 575 sets out how to determine the amount of taxable pension income from a foreign pension, including special rules for split years, the remittance basis, and unremittable income.

• Where a foreign pension is taxable under section 573, the full amount of pension income arising in the tax year is the taxable amount, subject to certain exceptions
• If the tax year is a split year for the individual, only pension income arising in the UK part of the year is taxable
• Foreign pension income is treated as relevant foreign income, meaning the remittance basis and associated deductions and reliefs may apply
• Separate rules for unremittable income may also be relevant where pension income cannot be transferred to the UK