General information · Not tax advice · As of 3 November 2026

UK Pensions and Tax for British Expats in the Philippines

If you are a British citizen living in the Philippines and drawing a UK pension, the position on treaty relief changed in 2026. This page sets out what has changed, what still applies, and where to get proper advice. It reflects official sources as of 3 November 2026.

What has changed

The Philippine position. The Bureau of Internal Revenue (BIR) treats only resident Filipino citizens and domestic corporations as Philippine residents for tax treaty purposes, because only they are taxed in the Philippines on their worldwide income. Resident foreign nationals are treated as residents for domestic tax purposes only, as they are taxed on Philippine-source income. This is set out in BIR Revenue Memorandum Order No. 51-2019 (8 July 2019), and follows Section 23 of the National Internal Revenue Code.

The UK position. HMRC has confirmed in correspondence dated October 2026 that it follows the BIR’s position. A British citizen who lives in the Philippines but is not a Filipino citizen is not regarded as a resident of the Philippines for the 1976 UK–Philippines Double Taxation Convention. Their UK-source income therefore remains subject to UK tax under UK domestic law.

What that means in practice. Article 17 of the convention gives the taxing right on pensions to the country where the recipient is resident for treaty purposes. If HMRC does not accept that you are a treaty resident of the Philippines, a treaty claim on form DT-Individual is unlikely to succeed, and HMRC will not issue an NT (no tax) code on that basis. Earlier guidance, including an earlier draft of this page, suggested otherwise for British residents. It should not be relied on.

Who this affects

• British citizens living in the Philippines who are not Filipino citizens, with UK pensions or other UK income.
• If you hold both British and Filipino citizenship and live in the Philippines, your position may be different, because resident Filipino citizens are taxed on worldwide income. Please check it with a Philippine tax adviser and a UK tax adviser before making any claim.
• UK government service pensions (for example civil service, armed forces and many police and teaching pensions) fall under Article 18 of the convention, not Article 17.

What still applies

The UK Personal Allowance (form R43)

British citizens who are not UK resident are still entitled to the UK Personal Allowance against their UK income. The standard allowance is £12,570 for the 2026 to 2027 tax year (6 April 2026 to 5 April 2027).

• You claim it on form R43, online or on paper, for the current tax year and the previous 4 tax years.
• You don’t need R43 if you already file a UK Self Assessment return.
• If you have UK rental income over £2,500, or income from a trade or profession, you need Self Assessment instead.
• If too much tax was taken under PAYE, HMRC may repay the difference.

Check your UK residence each year

Whether you are UK resident for a tax year is decided by the Statutory Residence Test. Long visits to the UK can change your status, so keep a record of your days.

Keep your tax code and records up to date

Check your tax codes, payslips and P60s each year in your Personal Tax Account or the HMRC app, and tell HMRC if your residence, citizenship or income changes.

If you disagree with HMRC

• Appeal or review. HMRC’s decision letter explains what to do. For Income Tax you usually have 30 days from the date of the letter to appeal. If HMRC doesn’t change its decision, you will be offered a review, or you can take the appeal to the tax tribunal.
• Mutual Agreement Procedure (MAP). If you believe you are being taxed in a way that is not in line with the treaty, MAP lets the two countries’ tax authorities consider the case. HMRC explains the process in Statement of Practice 1 (2018). Under Article 23 of the UK–Philippines convention, a case must be presented within three years of the first notification of the action concerned.

These routes are technical. Please take advice from a qualified tax adviser before you use them.

Before moving or changing a UK pension

Some people look at transferring a UK pension to a scheme overseas. A transfer to anything other than a qualifying recognised overseas pension scheme (QROPS) can be refused or taxed heavily, and some transfers to a QROPS are also taxed. GOV.UK explains the rules on transferring to an overseas pension scheme.

Get regulated UK pension transfer advice before you transfer, and be wary of unsolicited offers: GOV.UK lists where to report a suspected pension scam. Free, impartial guidance is available from MoneyHelper.

Where I fit in

I am an Insurance Agent of Pru Life UK. I don’t give UK or Philippine tax advice, and Pru Life UK plans do not change how your UK pension is taxed. What I can do is talk through your protection needs in the Philippines, such as life, health and income cover for you and your family, alongside the advice you get from your tax advisers.