Pensions

Is my UK pension taxed if I retire abroad?

Answered by Jordan Onraet-Wells, Founder & Chartered Tax Adviser (CTA). Published 17 July 2026. Last reviewed 17 July 2026.

The short answer

Usually yes, at least at first. UK private and workplace pensions stay taxable in the UK after you become non-resident, and UK tax keeps being deducted until you claim relief. If your new country has a double taxation agreement with the UK, the treaty usually moves the taxing rights to where you live, and you can apply to HMRC (typically on form DT-Individual) for the pension to be paid without UK tax. The State Pension is the main exception: non-residents do not usually pay UK tax on it.

Non-residents usually pay UK tax on UK income, and HMRC lists pensions as an example: leaving the UK does not switch it off.
Most treaties give taxing rights on private and workplace pensions to your country of residence, but the relief must be claimed, not assumed.
The claim (form DT-Individual for most countries) goes first to your local tax authority, which certifies it before HMRC applies the relief.
Until relief is agreed you can be taxed in both countries; relief can come before you are taxed, or as a refund afterwards.
Non-residents do not usually pay UK tax on the State Pension, although your new country may tax it.
Transferring to a QROPS triggers a 25% Overseas Transfer Charge unless a narrow exclusion applies; since 30 October 2024 EEA and Gibraltar schemes no longer escape it.

The default position: UK tax continues after you leave

You usually pay tax on your UK income even when non-resident, and pensions are on HMRC's list of taxable UK income, so retiring abroad does not automatically stop UK tax on a personal, workplace or company pension. What changes the position is the double taxation agreement with your new country: most treaties give taxing rights on private pensions to the country where you live. You claim by sending form DT-Individual (for most countries) first to your local tax authority, after which HMRC can authorise payment without UK tax and refund tax already overpaid. The mechanics are covered in our guide to double tax relief.

The trap: moving the pension is not moving yourself

Some retirees assume the answer is to transfer the pot to their new country. That is a bigger decision: a transfer from a UK registered pension to a QROPS (a Qualifying Recognised Overseas Pension Scheme) triggers a 25% Overseas Transfer Charge unless a narrow exclusion applies, most commonly being tax-resident in the same country as the scheme. Since 30 October 2024 transfers to EEA and Gibraltar schemes no longer escape the charge, and the position is re-tested for up to almost six tax years, so moving country again within that window can crystallise the charge later. The full rules are in our guide to foreign pensions and QROPS.

What to do before you draw your pension abroad

Check the pension article of the specific treaty with your destination: treaties differ and not every pension is treated the same way. Where possible, claim before payments begin, because relief at source is far simpler than reclaiming UK tax afterwards. The State Pension usually falls outside UK tax for non-residents, but your new country is likely to tax it. A Chartered Tax Adviser can confirm which country taxes each pension, handle the treaty claim and put the answer in writing before your first payment date.

Go deeper

Sources and further reading

This is general information for the 2026/27 UK tax year, not personal tax advice; speak to a Chartered Tax Adviser about your own position.

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