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TonyTax
TonyTax, Tax Consultant
Category: Tax
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Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I am about to receive a widows pension paid from the netherlands,

Resolved Question:

I am about to receive a widows pension paid from the netherlands, my late husbands nationality and employer were there although we were resident in UK, I have British nationality. I am concerned to know if I will be obliged to be taxed in the netherlands in view of double taxation agreement. Can I be exempted from the Dutch tax as I pay tax in uk
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Can you confirm whether the pension was already in payment when your husband died or he was still employed please. What will the gross annual amount of the pension be? Did your husband work for a private company as opposed to a Dutch government organisation?
Customer: replied 2 years ago.

No the pension was not in payment when my husband died. It is a widows pension. He was retired. The gross amount will be euro. 27.887,39 per annum. He worked for an international company, Royal Dutch Shell.

Expert:  TonyTax replied 2 years ago.

Thanks.

Article 17 of the UK/Dutch tax treaty which you can find here deals with pensions.

The pension itself will be taxable only in the UK. In fact, you will be liable to pay UK tax on only 90% of it as it is a foreign pension.

Article 3 deals with lump sums. Its possible that a lump sum if you receive one could be taxable in The Netherlands. Any such payment shouldn't be taxable in the UK. Since you will be receiving regular pension payments, I suspect that there is no lump sum involved unless your husband had life assurance through his employment with Royal Dutch Shell. A lump sum payment from such an arrangement would not be taxable in the UK if you were the designated beneficiary.

I hope this helps but let me know if you have any further questions.

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