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10% deduction on foreign pension income

Article ID: 810
Last updated: 09 Apr, 2019

From 06/04/2017 the ruling for 10% foreign pension deduction changed and therefore, you need to ascertain whether you are eligible for the 10% deduction or not. More information on this can be found on the HMRC web page here. By default, the returns from 2019 will not apply the 10% deduction unless you complete the below steps:

SimpleStep mode

  1. Click on Other Income from the left hand menu.
  2. Tick the box Did you have any Foreign Income?
  3. Click Next Step until you reach the Foreign income screen.
  4. Tick the box Foreign pensions.
  5. Click Next Step until you reach the Foreign pension screen.
  6. Enter your pension details.
  7. Tick the box for Favourable tax treatment (you may need to scroll to the right hand side if your screen is small or you are using a laptop)
  8. Enter the 10% tax deduction.

HMRC Forms mode

  1. Select Foreign > Page 2,3.
  2. Click here to enter the foreign pension details.
  3. Tick the box for Favourable tax treatment (you may need to scroll to the right hand side if your screen is small or you are using a laptop)
  4. Enter the 10% tax deduction.

For earlier years, you should complete the below instructions:

How to claim the 10% deduction on foreign pension income in 2016/17 and previous years

When you enter the amount of your foreign pension income on the Foreign pension screen, the 10% deduction will be calculated automatically if you're entitled to it. A note will be inserted to explain to HMRC that the deduction has been applied. You can enter your foreign pension income using SimpleStep or HMRC Forms mode. Please see the below instructions:

SimpleStep mode

  1. Select Other Income from the left-hand menu.
  2. Tick the box Did you have any Foreign income?
  3. Click Next Step until you reach the Foreign income screen.
  4. Tick the box Foreign pension.
  5. Click Next Step until you reach the Foreign pension screen.
  6. Enter your pension details.

HMRC Forms mode

  1. Select Foreign > Page 2,3.
  2. Click here to enter the foreign pension details.
Article ID: 810
Last updated: 09 Apr, 2019
Revision: 8
Views: 2997
This article was:  


Also listed in
folder Tax Return Production -> SA100 Individual Return