Latest update on taxation of UN pensioners in the UK 2024

In August 2022, I updated my original blog from 2018. You can find the 2022 version here: 2022 update on taxation of UN pensioners in the UK.

As a few years have elapsed, it is worth summarising the position for new retirees from the United Nations who are UK residents and in receipt of a pension from the United Nations Joint Staff Pension Fund.

A reminder

A partial exemption from tax applies to every UN pensioner resident in the UK and usually applies for a significant number of years. However, it must be noted that this partial exemption does not carry on indefinitely.

To understand how this principle was reached you can view my previous two blogs which contains the history.

A complex but worthwhile process

The calculation to determine this partial exemption is complex and an understanding of US rules is required.

Of course, as time continues, there are fewer pensioners who need to consider reclaiming tax from earlier periods. However, any pensioners who have not looked at this issue should investigate whether there is any merit to making a claim. It is currently possible to go back six tax years.

How Westcotts can help tax advisors and pensioners

Westcotts is happy to work with existing advisors who might not necessarily have expertise in this complex area.

It is important that UN employees nearing retirement understand the partial exemption, how much it will be and for how long it will run.

We can help with these questions and provide support with any UK tax filings as well as offering tax advice.

After-tax pension earnings

For some soon-to-be retirees, it may be worth understanding how much after-tax pension earnings they will have to fund their lifestyle requirements.

It is also important to consider how much of their lump sum to commute from the fund at retirement. Westcotts offers a service which can model a variety of scenarios to help people make these major life decisions.

For more information, whether you are a fellow advisor or a potential new client, please contact Paul Webb on 01392 288555 or email him at paul.webb@westcotts.uk.