If you are based overseas and receiving a pension, discovering which tax jurisdiction you fall under is vital to your pension planning. As a UK resident you are normally taxed on your income worldwide, including pensions from overseas.

When looking at the level of taxation applied to your pension you need to not only take into account the UK regulations, but the regulations in the country where the pension is paid, as this may also be subject to tax again.

The country where you are receiving the pension will determine whether you receive your pension as gross or net. In most cases a double tax treaty can be done to negate the risk.

Any UK pensions in payment can have the tax code changed back in the UK so make the pension tax free from the UK government.

Other countries that have similar rules include Canada, Australia and New Zealand.