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PENSION PRODUCTS
PERSONAL PENSIONS (INCLUDING STAKEHOLDER PENSIONS)
QUESTIONS AND ANSWERS - LEGISLATION AND PRACTICE
ELIGIBILITY
Can UK nationals who work outside the country contribute to a personal pension?
Anyone classed as a "seafarer" by the Inland is eligible to contribute to a PP/SHP, if the person qualifies for the "100% foreign earnings deduction" (which applies only to seafarers from 17 March 1998). He/she is then eligible even though not actually paying any UK tax.
This is covered in para 3.28A of the Inland Revenue Guidance Notes on Personal Pensions (IR76):
Foreign Earnings Deduction
3.28a Individuals qualifying for the 100% foreign earnings deduction, which applies to certain employees working outside the UK (seafarers only from 17 March 1998), are still eligible to contribute to a personal pension scheme for any tax year in which they have relevant earnings chargeable to UK income tax.
Contributions are paid net of basic rate tax, and are limited to the higher of the earnings threshold and the relevant percentage of net relevant earnings from a basis year, in the usual way (see paragraphs 4.9 and 4.10).
Any questions concerning an individual's liability to UK tax should be addressed to the Tax Office dealing with that individual's tax affairs.
Mortgage Products
Legacy
Disclaimer
Pension Products
Contact
Protection Products
Investment Products
General
PERSONAL PENSIONS (INCLUDING STAKEHOLDER PENSIONS) QUESTIONS AND ANSWERS - LEGISLATION AND PRACTICE ELIGIBILITY
Anyone classed as a "seafarer" by the Inland is eligible to contribute to a PP/SHP, if the person qualifies for the "100% foreign earnings deduction" (which applies only to seafarers from 17 March 1998). He/she is then eligible even though not actually paying any UK tax.
This is covered in para 3.28A of the Inland Revenue Guidance Notes on Personal Pensions (IR76):
Foreign Earnings Deduction
3.28a Individuals qualifying for the 100% foreign earnings deduction, which applies to certain employees working outside the UK (seafarers only from 17 March 1998), are still eligible to contribute to a personal pension scheme for any tax year in which they have relevant earnings chargeable to UK income tax.
Contributions are paid net of basic rate tax, and are limited to the higher of the earnings threshold and the relevant percentage of net relevant earnings from a basis year, in the usual way (see paragraphs 4.9 and 4.10).
Any questions concerning an individual's liability to UK tax should be addressed to the Tax Office dealing with that individual's tax affairs.
