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Small Pension windfall

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From a UK company I worked for 40+ years ago.

 

Pay UK tax or Thai tax if they ask for it.  Lump sum not monthly / annually

 

Seems UK has 25% tax free and 20% on the rest. 

 

Just wondering if it is actually worth filling in the HMRC Double Taxation Treaty Relief form.

How small and do you have any other UK income?  Remember you have £12,570 GBP available at 0% taxation.

  • Author
1 hour ago, treetops said:

How small and do you have any other UK income?  Remember you have £12,570 GBP available at 0% taxation.

 

Cheers. I don't have any UK income so.......

If it's below £16,760 you'll get it all (probably pay tax initially and then get it back).  If it's more than that then 20% on the excess.

 

Only you can decide if it's worth it to keep off the Thai tax radar as they have to be involved if you go the route your suggesting.  Depends on any other income and sources whether this is right for you.

On 12/8/2025 at 4:59 PM, VocalNeal said:

Just wondering if it is actually worth filling in the HMRC Double Taxation Treaty Relief form.

 

Absolutely not.  Company pensions are not covered by the DTA (and neither is the state pension) - only government pensions, paid to former government employees are covered.

 

(Yes, the civil servants made sure they're alright, Jack, and were perfectly happy to screw the rest of us.)

Just now, Zaphod Priest said:

Absolutely not.  Company pensions are not covered by the DTA (and neither is the state pension) - only government pensions, paid to former government employees are covered.

 

(Yes, the civil servants made sure they're alright, Jack, and were perfectly happy to screw the rest of us.)

 

I know what you're getting at but company/private pensions are covered by the DTA in as much as they are not on any list of exclusions so shows they can be taxed in Thailand.  The OP may prefer that rather than it being taxed in the UK, but we don't have enough information to know if that's a wise choice or not.

51 minutes ago, treetops said:

If it's below £16,760 you'll get it all (probably pay tax initially and then get it back).  If it's more than that then 20% on the excess.

 

Only you can decide if it's worth it to keep off the Thai tax radar as they have to be involved if you go the route your suggesting.  Depends on any other income and sources whether this is right for you.

Why £16,760?

3 minutes ago, scubascuba3 said:

Why £16,760?

 

Because the first 25% is tax free, and 16,760 minus 25% is 12,570.

4 minutes ago, scubascuba3 said:

Why £16,760?

 

25% of £16,760 is tax free (£4,190) which leaves £12,570 taxable at 0%.

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