The vast majority of those who will receive Carer’s Allowance Supplement are expected to have low incomes and will not pay Income Tax on the payments. Both overseas pensions are remitted to the UK. Alternatively, it might be possible to arrange for the tax on the French pension to be collected via PAYE from the UK occupational pension. I have the same question as juzza07. This measure affects individuals entitled to the 9 social security benefits outlined by confirming their tax treatment as being taxable or tax exempt. for a more detailed discussion of these issues. What social security benefits are taxable. What UK tax do I pay on my overseas pension? Under Article 17 a UK resident subject to UK tax on the arising basis is completely exempt from US tax on the US social security pension. We display advertisements from Google and other ad services, which helps fund website operating costs. Carer’s Allowance Supplement payable under the Social Security (Scotland) Act 2018 will be legislated to confirm the payments are taxable, Discretionary Support Scheme payable under the Discretionary Support Regulations (Northern Ireland) 2016, will be legislated for as tax exempt, Council Tax Reduction Scheme payable under the Local Government Finance Act 1992 will be legislated for as tax exempt, Discretionary Housing Payments payable under the Child Support, Pensions and Social Security Act 2000 will be legislated for as tax exempt, Flexible Support Fund payable under the Employment and Training Act 1973 will be legislated for as tax exempt. US/UK taxation of social security - REDUX, Re: US/UK taxation of social security - REDUX, Quote from: Omphaloskepsis on February 11, 2012, 12:30:32 PM, http://webarchive.nationalarchives.gov.uk/20110620155444/http://hmrc.gov.uk/bulletins/tbse6.htm, Quote from: vadio on February 11, 2012, 03:14:48 PM, Quote from: nun on February 11, 2012, 01:01:26 PM, Quote from: theOAP on February 11, 2012, 03:36:04 PM, Quote from: guya on February 11, 2012, 05:12:12 PM, Quote from: vadio on February 11, 2012, 05:33:15 PM, Quote from: theOAP on February 11, 2012, 05:58:08 PM. HMRC should not accept a claim for foreign tax credit relief in respect of taxes which are refundable by the overseas authority. Taxable credit for company writing off loan? In particular, please note we do not cover the UK taxation of overseas pension lump sums, which may be treated differently. If you have established that your overseas pension is taxable in the UK under UK domestic law, the next step is to consider whether there is a double tax agreement between the UK and the country where the overseas pension is sourced, to see if it states that the UK’s right to tax that income is overridden. There is an agreement between the US and the UK concerning Social Security. If in doubt, you should contact a welfare rights adviser through an organisation such as Citizens Advice. Social security benefits are administered by a number of different UK government departments and the devolved administrations. This is the general rule and can be found in most treaties.