The introduction of UK registered pension schemes from 6 April 2006 (see Division E7.2) changed the rules for expatriate employees. An expatriate employee and their employer may be able to contribute to a UK registered plan or a non-UK plan, but tax relief may be unavailable or restricted because of the individual's residence status, the amount of their UK-taxable earnings or the overall contribution limits set out in the UK legislation. Employer contributions to a pension plan which does not qualify for tax relief must normally be included in the employee's taxable earnings.
Expatriate employees' deductible pension contributions
Pension contributions can attract UK tax relief where one of the following applies:
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(a)ÌýÌýÌýÌý the plan is a UK registered pension scheme and the employee is a 'relevant UK individual' (see E7.221)1. Employer contributions on behalf of the employee do not constitute a taxable benefit in kind2. An individual continues to be a relevant UK individual for a number of years after becoming non-resident and so this may allow an employee to continue contributing during a foreign
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Web page updated on 17 Mar 2025 17:03