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Retirement Pensions (Taxation)

Volume 22: debated on Thursday 22 April 1982

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asked the Chancellor of the Exchequer if he will make a statement on the treatment for income tax purposes of West German social security retirement pensions paid to persons resident in the United Kingdom.

[pursuant to his reply, 21 April 1982, c. 93]: West German social security retirement pensions paid to persons resident in the United Kingdom are chargeable to United Kingdom income tax under case V of schedule D in accordance with the provisions of Sections 108 and 109 of the Income and Corporation Taxes Act 1970.If the recipient is domiciled or, being a British subject or a citizen of the Republic of Ireland, is ordinarily resident in the United Kingdom a deduction of one-tenth or, where the pension is payable under a special provision of the law of the Federal Republic of Germany, or any part of it, for victims of Nazi persecution, one-half of the pension is allowed in computing the amount chargeable to tax. A person who although resident is not domiciled or, being a British subject or a citizen of the Republic of Ireland, not ordinarily resident in the United Kingdom is liable to tax on so much of the pension as is remitted to this country.