Double taxation agreements are designed to protect against the risk of double taxation where the same income is taxable in two states. So, under such agreements, pensions are only taxed in the country where you live.

The UK has entered into more than 1,300 double taxation treaties worldwide and has the largest network of treaties, covering over 100 countries.

You will not be liable to tax on your British pension if you live in a country that has a double taxation agreement with the United Kingdom.

If you are a UK resident for tax purposes, or there is no relief under a double taxation agreement tax will normally be deducted from your pension before it is paid. All Government-sponsored schemes such as the Civil Service pension will be subject to the British taxation regime even if you live abroad.

If you do live in a country where there is an agreement in place you must apply to the foreign tax office in Britain to ensure that your pension is paid gross.

When you are filing your tax return in the country where you live, you need to tell the local tax authorities not to aggregate tax on to local tax returns. This also applies to state pensions.

Most agreements are highly sophisticated and all differ in subtle ways, so care and further advice is required.