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Tax on UK pension


I'm hoping Becasse sees this as he seems to have quite a lot of knowledge on this subject. Any help/advice from anyone who knows will be appreciated.

I have the possibility to take an old UK company pension. I am long term resident tax payer here with own company and UK and Belgian nationality.
With this UK pension I have the option to take 25% up front (tax free if I was in UK) now and then a monthly sum which would be less than €10000 per year (perhaps significant as it may be below the threshold), or to not take the 25% in which case it is just over €10k per year.
My current understanding is that I might not be taxed on it as such, but the Belgian Fisc would increase the % tax that I pay on my Belgian income.
I'm getting conflicting information from accountants.
Does anyone have actual experience?


Any pension (other than one resulting from service as a civil servant which would still be taxed in the UK) originating from the UK will be added to your taxable Belgian income, there is no separate "threshold". The code number will depend on your age but that doesn't change the amount of tax payable. If you can have the pension paid direct into a Belgian bank account in euros, then at the end of each year you will have to total the amount that has been paid, otherwise you will have to convert the sterling payments into euros. (Don't imagine that you can keep the money away from the Belgian fisc by keeping it in the UK.) I don't know how the lump sum would be taxed but you can be certain that it will be, I suggest that you ask the fisc, they are very helpful, are free and will give you a definitive answer, rather than get conflicting (and probably incorrect) advice from accountants.

Feb 19, 2020 10:59

@Becasse. I thought that you would know from past posts that you have made.

There are two certainties in life - taxation and death.

Thank you for your advice.

Feb 19, 2020 17:30