An NT tax code means "no tax". Under UK PAYE rules for 2026/27, when HMRC gives your UK pension provider an NT code, the provider pays that pension without deducting UK income tax. A non-UK resident may be able to get one by making a treaty claim to HMRC, depending on whether a double tax treaty gives the right to tax that pension to the country where they now live.

What an NT code does

UK pension providers run pensions through PAYE, so they deduct UK income tax by default using the tax code HMRC gives them. If you live abroad and a treaty says your pension is taxable only in your country of residence, an NT code switches off UK deductions on that specific pension.

An NT code applies to a particular source of income. If you have three UK pensions, each one needs to be covered.

Who may be able to get one

You will generally need all of the following:

  • you are not UK resident under the Statutory Residence Test
  • you are tax resident in a country that has a double tax treaty with the UK
  • the treaty gives the taxing right on that type of pension to your country of residence

Several UK treaties, including those with the UAE, Spain and Portugal, say private and workplace pensions are taxable only in the country where you live, subject to exceptions. Government service pensions, such as civil service, NHS, teachers' or armed forces pensions, are generally taxable only in the UK unless you are a national of your country of residence, so an NT code would not normally apply to them. The State Pension is handled differently again. Tax residence is fact-specific, so check your position before claiming.

How to apply

The broad position is a paper double taxation relief claim:

  1. Get the right form. Most people use form DT-Individual. Some countries have their own version; residents of Spain, for example, use form Spain-Individual.
  2. Complete it. You give details of yourself, your residence, and each UK pension, including the payer's name and address and when payments began. A copy of your latest P60 from the provider helps.
  3. Get it certified. The form notes ask you to send it to the tax authority of your country of residence to certify that you are resident there for the treaty. Some authorities stamp the form; others issue a certificate of residence instead. In the UAE, this is generally a Tax Residency Certificate from the Federal Tax Authority.
  4. Send it to HMRC. Depending on the country, the overseas authority forwards it or returns it to you to post to HM Revenue and Customs, Pay As You Earn and Self Assessment, BX9 1AS, United Kingdom.

Once HMRC accepts the claim, it can issue the NT code to your provider. UK tax already deducted in the tax year may be refundable through the provider or by HMRC.

Keeping it in place

Expect HMRC to ask for fresh evidence of residence from time to time, such as a recent certificate of residence. HMRC's PAYE manual says a new claim form is needed for each new source of income, even if an earlier claim is already in place.

Tell HMRC if you move country or return to the UK. If you return within five years and were UK resident in at least 4 of the 7 tax years before you left, the temporary non-residence rules can bring some pension withdrawals back into UK tax.

Read more in our guide to drawing a UK pension abroad.

Worked example

Illustrative example only, not a real client.

Angela moves to Lisbon in April 2026. Assume she is Portuguese tax resident and non-UK resident under the 2025 UK/Portugal treaty, and her UK private pension of GBP 2,000 a month (GBP 24,000 a year) is a private pension under Article 17. It is still being paid with UK tax deducted.

  • She completes DT-Individual with details of the pension and her P60.
  • The Portuguese tax authority certifies her residence.
  • She sends the claim to HMRC, which issues an NT code to her provider.
  • Her pension is then paid without UK tax, and tax deducted earlier in 2026/27 may be refunded. She declares the pension in Portugal, where it is taxed under Portuguese rules.

Common mistakes

  • Assuming your provider will stop deducting tax just because you have moved.
  • Applying for an NT code on a government service pension that remains taxable in the UK.
  • Not making a new claim when a new pension starts.
  • Getting an NT code and then not declaring the pension in your country of residence.

A regulated financial adviser can help. Get in touch for a free introduction.

Sources and further reading

Last reviewed: October 2026. Tax year: 2026/27 (UK); 2026 (Spain, Portugal). Jurisdictions covered: UK, UAE, Spain, Portugal. Rates, legislation and guidance change, so recheck before relying on this. Rules can differ between England and Wales, Scotland and Northern Ireland; tax residence is fact-specific; treaty outcomes depend on residence, domicile or nationality provisions; examples are simplified and omit reliefs, costs, exchange rates and anti-avoidance rules. This is general information, not financial, tax or legal advice. Take advice in the relevant country before acting.