Tax treaty is compatible

The taxpayer was a British national who moved to the Republic of Ireland in 2004. He began receiving his civil service pension two years later and had other sources of income that were exempted from UK tax by the UK/Ireland double taxation convention (DTC).

Article 18(2) of the DTC provided that an occupational pension paid by the state to a national had to be taxed by the originating country.

The taxpayer appealed claiming the article contravened EU law and went against his human rights. He should pay no more UK tax on his civil service pension than he would pay Irish tax on it.

The matter proceeded to the First-tier Tribunal. The judge said a member state “was not in breach of its treaty obligations because it taxes differently and less favourably than some other member state”.

The fact the taxpayer had moved to Ireland where his...