 |
 |
|
|
Some pensions are exempt (typically pensions payable under German or Austrian laws to victims of Nazi persecution). Do not enter exempt pensions. Where the pension is partially exempted then enter the non-exempt portion:
employee pension awarded on retirement due to disablement, injury or work related illness then the excess over the amount that would have been paid had the person retired on ill-health grounds is exempt.
Where a war widows' pension or pension due to other dependants of deceased forces/Merchant Navy personnel is not paid because the taxpayer receives another pension or benefit, the amount due (but not paid) reduces the taxable amount of the pension actually received.
Enter details of the pension on the parent record:
A different screen, showing prior year totals, is used for 1997-1998,
DETAILS of SOURCE - enter details of the provider, this information does not appear on the tax return.
Country - this information does appear on the tax return.
Date Source, Acquired, Disposed of - these dates are for information purposes only and may be left blank, if the date disposed of is entered this will prevent the record being carried forward to the following tax year.
Claim Tax Credit Relief (Y/N) - enter Y in the claim tax credit relief field to obtain a tax credit, in the computation, for the foreign tax paid click here or more details of this type of relief.
Claim 10% deduction (Y/N) - a 10% deduction is available for overseas pensions funded by an overseas employer or pension fund. This is not allowed if the income is remitted to the UK. If the income is on an arising basis the deduction would be 10% regardless of if the income is remitted to the UK or not. The deduction will be given if this field is left blank or Y entered.
Enter the income received on the income record:
Income received - enter the gross income received.
Foreign tax paid - enter the foreign tax paid. IRIS does not store rates of withholding tax. The foreign tax entered should be limited to the appropriate rate of withholding tax where a double taxation agreement exists between the UK and the country in question.
Date income received - this is for information purposes only and may be left blank.
UK/Special Withholding Tax - enter the amount of UK tax/special withholding tax which has been deducted from the income.
