Draft Finance Bill 2017: Overseas pensions

While LITRG recognises that removing the '90% rule' for taxing foreign pension income in the UK is intended to be a fairness measure and simplify the system, we wish to highlight that those in receipt of a foreign pension are unlikely to view it as such, imposing as it would an additional tax cost on them. For those in receipt of tax credits it will also result in a reduction in their entitlement – a direct reduction in their income, irrespective of whether or not they are a taxpayer.