INTM162123 - UK residents with foreign income or gains: certificates of residence: for UK registered pension schemes: overview

UK registered pension schemes resident in the UK may be able to claim benefits under the UK’s double taxation agreements (DTAs). Entitlement to DTA benefits, and the certificates of residence HMRC can issue, will depend on how the pension scheme has been arranged and the terms of the relevant DTA.

Before requesting a certificate of residence customers should check whether the other state provides a specific form for pension schemes to claim benefits under the DTA. Where the other state provides a form the customer should complete and send that form to HMRC instead of requesting a certificate of residence.

Requests for certificates of residence from UK resident registered pension schemes must provide the same information and satisfy the same conditions set out at INTM162010 onwards.

HMRC consider that a registered pension scheme (or trustees/provider of a registered pension scheme) is the beneficial owner of the scheme’s income unless there are circumstances that indicate this is not the case.

A certificate of residence may only be issued to a UK resident registered pension scheme if the scheme can claim benefits under a DTA. Where confirmation of UK tax residence is required for any other purpose a “letter of confirmation” may be issued, as provided at INTM162140. The wording of letters may be adapted to the particular form taken by the registered pension scheme, but any other request to amend the form of words given at INTM162140 should be referred to CSTD Business, Assets & International Base Protection Policy Team.

When a UK resident registered pension scheme is being wound up, the owner of the scheme assets should ensure that their scheme has received all repayments of tax before the scheme completes winding up. This means that certificates of residence should be requested from HMRC and the relevant tax repayments claimed from the overseas tax authorities in sufficient time before the scheme finishes winding-up. Making the repayment to some other person after the scheme has been wound up could mean that an unauthorised payment is made which would be subject to the unauthorised payment charge. For more information on unauthorised payments see PTM130000.