types of British state pensions

[Michael Skully]

		The ATO indicates that some British state pensions might qualify for an 8% tax deductions, but others don't. It refers to A, B, C, and D category pensions. Sadly, they do not indicate which is which. My look at the UK pension office did not seem to mention these. Any ideas? Mike British pensions If you received a pension from the United Kingdom State Pension (previously known as the British National Insurance Scheme), you may be entitled to a UPP deduction. For a category A pension or a category B widow's pension, you can calculate your deduction by multiplying your UK State Pension (in Australian dollars) by 8%. If you want your UPP calculated using the exact method, you'll need to complete a Request for a determination of the deductible amount of UPP of a foreign pension or annuity. If you received a category C or D pension you're not entitled to a deductible amount of the UPP. https://www.ato.gov.au/individuals-and-families/your-tax-return/instructions-to-complete-your-tax-return/mytax-instructions/2025/income/foreign-income/foreign-pension-and-annuity#Britishpensions

[Steve Symmons]

Basically, if the pension is derived from YOUR NI contributions you are entitled to claim the proportion of the pension that is effectively the return of those funds.

There is a choice: undertaking a complex formula that based on the exact amount of contributions made, your life expectancy (via notary tables);

Or using a flat 8% (which is actually generous in almost all circumstances).

Claim it every year 

NB

Some “old” pension recipients’ wives are entitled to a widow/wife pension from their Partners contributions. I’m not sure that they can make the claim.

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[Michael Goodall]

The ATO are correct. However, Category D pensions which are not eligible for the discount are not available in Australia.

Category C, which do not qualify were for those who reached SPA before 5^th July 1948 and their wive so hardly anyone left in the world

All pensions being issued for those who reached their State Pension Age after 5^th April 2016 are under a category A pension. The majority of people before that date are under a category A or B pension.  

Best regards,

Mike Goodall

Tel:-     +61 8 6364 0859

Mob:- +61 403 909 865

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From: 'Michael Skully' via BAPA <bapa...@googlegroups.com>
Sent: Wednesday, 22 July 2026 3:07 PM
To: bapa...@googlegroups.com <bapa...@googlegroups.com>
Subject: [bapanews] types of British state pensions

 

[Paul Swain]

Hi Mike!

There's a post https://groups.google.com/g/bapanews/c/Afj0qQ3FkIg/m/8DprD60cDgAJ (from you, by coincidence) that lists all the categories.

Paul

[Michael Skully]

Thanks - I guess I did better research when I was younger

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