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Exempt income—specific pension income for non UK residents

E4.314 Exempt income—colonial pensions and overseas service pensions

Certain pensions which are the income of persons not resident in the UK, are exempt from any charge to UK income tax¹.

For the exemption to income tax to apply, the person to whom the pension is payable must meet the foreign resident condition and be not resident in the UK (see below). The pension funds referred to in these provisions may be UK sourced and therefore, the pension income would, in the absence of the specific exemption, be within the scope of UK income tax under general rules for the taxation of non residents (see E6.125).

Note that overseas government pensions generally, are not exempt from income tax. For the general provisions relating to pension income, foreign pension income and overseas government pensions, see E4.133.