Pension sorted, deduction made.

[newcastle]

@ Duaak

As you appear to be tax resident in Egypt, but not in UK, you could claim treatment under the UK/Egypt Double Tax treaty.

This provides that the UK pension of an individual resident in Egypt is taxable only in Egypt, and so can be paid without deduction of UK tax.

Unfortunately, whilst pensions of Egyptian tax residents are generally exempt from Egyptian tax, this does not apply to the pension of expats. Accordingly, although you'll be exempt from UK tax on your State, and private, pensions you would be liable to Egyptian tax....which is more than the tax payable in UK.

Not only that, you'd have to deal with the full gamut of Egyptian tax bureaucracy.....a daunting prospect.

I suspect most UK expats in Egypt are happy to continue paying UK tax on their UK pensions and do not claim to be tax resident in Egypt (even though, technically, they are).

A good reason for living in Turkey!! The UK has a Dual Tax Agreement with Turkey, which allows for British residents to choose where they pay tax. As the majority of pensions are tax free in Turkey ( until you get into extreme levels of income ) it's a great option. I have both State and private pensions and pay no tax at all! It took a year to sort it out with the UK tax office, who kept losing my documents , but it was certainly worth the effort!

As you say, under the UK/Turkey DTA, your UK state pension is exempt from tax.

Other UK pensions....well, I'll take your word for it that the system is generous. I know it is for Turkish source pensions.