The European Commission has called on the UK to allow tax deductions for all pension contributions paid by resident taxpayers to funds established in the EU and European Economic Area.
Such a move would see cross-border pension contributions treated in the same way as similar contributions to domestic pension funds. Currently, the UK makes tax relief for overseas pension contributions conditional on the pension fund. The fund provides information to HM Revenue & Customs, which may then treat it as equivalent to a UK approved pension fund. If an overseas fund is unable or unwilling to provide the information to HMRC, no tax relief is available for the contribution to the fund, which can force the employee to take out a UK pension instead. The Commission regards this ...
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