I'm a retired Brit living permanently in Thailand and drawing a UK defined benefit pension.  I will be commencing my State Pension next year. I currently pay UK Income Tax on my total income because my private pension pushes me above the £12,570 Personal Allowance.  I've been advised that the UK-Thailand Double Taxation Agreement (DTA) may offer a legal way to reduce this tax to virtually nothing.

The Proposal

The idea is that under the DTA, Thailand (my country of residence) gains the sole right to tax my private occupational pension, and the UK loses the right. The UK State Pension is a 'Governmental Pension' and remains taxable in the UK, but since it falls within the Personal Allowance, it won't actually be taxed.

 

The Mechanism

If the DTA applies to my private pension, I should be able to apply to HMRC for an NT (Nil Tax) code on that pension. This would mean my pension provider would pay the full amount gross, without deducting the 20% UK Basic Rate tax at source.

The Challenge

To make this happen, I need to complete an HMRC form (e.g., DT-Individual) and have it certified by the Thai Revenue Department to prove my residency. I already hold a Thai Tax Identification Number (TIN). This is where I need the real-world experience.
 

My Question to the Forum:

Has anyone here successfully applied for an NT tax code on their UK private (occupational/defined benefit) pension while living permanently in Thailand, using the DTA?  If so:

• Which forms did you use?

• What specific documentation did the Thai Revenue Department require for certification?

• How long did the process take with HMRC, and did you encounter any issues?
   

Any precedents or practical guidance would be greatly appreciated.

p.s. If this works, AI has calculated that I would pay 12% of the tax that would be paid if the pension remained in the UK tax jurisdiction.
 

13 minutes ago, IsaanT said:

My Question to the Forum:

Has anyone here successfully applied for an NT tax code on their UK private (occupational/defined benefit) pension while living permanently in Thailand, using the DTA?  If so:

No need as foreigners are not required to fill in Thai tax forms unless they work in Thailand.

And the UK will take tax from any money sourced in the UK, no choice for you.

3 minutes ago, BritManToo said:

No need as foreigners are not required to fill in Thai tax forms unless they work in Thailand.

And the UK will take tax from any money sourced in the UK, no choice for you.

Thanks for your prompt response.

More responses welcomed, particularly if they address the question asked. 😉

 

If you don't remit your occupational pension in the year it is paid it will be tax free in the UK and Tax free in Thailand when you finally remit it.....assuming your are tax resident in Thailand.......SIPP's are the same, but state pensions and government pensions, earned income, rental income will be taxed in the UK regardless.

 

Having said all that best wait to see what people who know what they are talking about say

33 minutes ago, IsaanT said:

The UK State Pension is a 'Governmental Pension'

Unfortunately that is incorrect in terms of the DTA . Government pensions are civil service/armed forces etc. This point has been made multiple times in the tax threads but in case you have missed it or disagree have a look at the digest -

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/710099/DT_Digest_April_2018.pdf

Page 34 and look across to Note 4.

 

Currently nothing is taxed unless it is remitted into Thailand as mentioned above which suggests it may affect getting the NT coding. However please keep us informed as I would guess many are in your position and may be interested.

36 minutes ago, BritManToo said:

No need as foreigners are not required to fill in Thai tax forms unless they work in Thailand.

This is in your not so humble opinion...........

If you are tax resident (spend more than 180 days here) and remit more than allowances and the money is not excluded in some way (savings prior 2024/LTR/US SS etc) and you theoretically owe tax then I think the TRD may disagree with you.........but what do I know...........

13 minutes ago, topt said:

please keep us informed as I would guess many are in your position and may be interested.

I agree. I will.

I've read that it's very difficult to get an NT Tax Code when living in Thailand because it is/was very easy to avoid paying tax on monies remited and so effectively pay no Tax anywhere. 

 

There's a similar thread running here... 

 

... In which @alanrchase mentioned he got an NT Tax Code many years ago, but I don't know if he got this whilst living in Thailand or in another country before moving to Thailand.

 

 

I do wonder,if you did manage to get an NT Tax Code would you be taxed in Thailand on all of your UK Income irrespective of whether you remitted it to Thailand? And if so, how this would work out if you had an LTR visa.