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Preparing pension schemes for Scottish rate of income tax

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Starting in January 2018, HMRC will notify pension scheme administrators operating relief at source pension schemes of their individual scheme members’ residency tax status, in time to apply the correct rate of relief for Scottish rate taxpayers from April 2018.

The introduction of the Scottish rate means that pension scheme members receive tax relief on their contributions based on their residency tax status. For scheme administrators operating relief at source pension schemes, if the Scottish rate differs from the rest of the UK rate, this affects the amount of tax relief given to each member.

HMRC’s Pension schemes Scottish rate of Income Tax newsletter provides information about submitting annual returns of individual information from 2018 onwards using the new secure data exchange service, which will replace the existing secure electronic transfer system completely from 2019.


Issue: 1354
Categories: News