Pension scheme withdrawals from a SIPP were ‘paid in consideration of past employment’ and were within Article 17 of the UK-Portugal double tax convention, and as the taxpayer was resident in Portugal at the time of the withdrawals, the convention allocated the taxation rights over them to Portugal.  

Summary 

Pension scheme withdrawals from a self-invested personal pension (SIPP) were ‘paid in consideration of past employment’ and were within Article 17 of the UK-Portugal double tax convention (DTC), and as the taxpayer was resident in Portugal at the time, the DTC allocated the taxation rights over the withdrawals to Portugal. 

Background 

The appellant had been an employee of Tesco, which made payments into the Tesco pension scheme in respect of the appellant’s employment. The appellant built up his entitlement under the Tesco pension scheme