NT Tax Code for Non-Residents: How to Apply (2026)

If you live abroad and draw a UK pension, you may find UK tax deducted at source even though your country of residence also expects to tax the income. An NT tax code, where you qualify for one, stops the UK deduction so the income is taxed only where the treaty says it should be. Applying for it follows a defined HMRC route that takes patience.

In short

• NT stands for No Tax: a code that stops UK tax being deducted from your pension.
• It is issued where a double taxation agreement gives your country of residence taxing rights.
• You apply through HMRC, usually using the DT-Individual form.
• You generally need a certificate of tax residence from your local authority.
• Processing commonly takes around twelve to sixteen weeks.

What an NT code does

An NT, or No Tax, code tells your pension provider not to deduct UK income tax from payments to you. It is used where the double taxation agreement between the UK and your country of residence gives the right to tax that pension to your country of residence rather than the UK. With an NT code in place, you avoid having tax taken in the UK and then having to reclaim it, receiving the income gross and accounting for it where you live.

Who qualifies

Two conditions usually need to be met. First, you must be non-UK tax resident under the Statutory Residence Test. Second, you must live in a country that has a double taxation agreement with the UK under which your country of residence has the taxing rights over the pension. If both hold, you can apply for the code; if the treaty leaves taxing rights with the UK, an NT code will not be appropriate.

How to apply

The usual route is the DT-Individual form, although some countries have their own version. The form declares your non-UK residence and your pension income. You generally need to obtain a certificate of tax residence from the tax authority in your country of residence to accompany it. In many cases a small pension payment needs to have been made first so that a PAYE record exists for HMRC to apply the code to.

After the code is issued

HMRC sends the NT code directly to your pension scheme, which then stops deducting UK tax. It is wise to confirm with the scheme that the code has been applied before making any large withdrawal, to avoid tax being taken in error. An NT code removes UK tax at source, but it does not remove your obligation to declare and pay tax on the income in your country of residence where that country requires it.

FAQ

What is an NT tax code?

NT means No Tax. It is a code that stops UK income tax being deducted from your UK pension, used where a double taxation agreement gives your country of residence the right to tax the income.

Who can get an NT code?

Generally those who are non-UK tax resident and live in a country whose double taxation agreement with the UK grants it the taxing rights over the pension.

How do I apply for an NT code?

Usually with the DT-Individual form, supported by a certificate of tax residence from your country. A small pension payment may be needed first to create a PAYE record.

How long does it take?

Processing commonly takes around twelve to sixteen weeks. HMRC then sends the code to your pension scheme.

Does an NT code mean I pay no tax at all?

No. It stops UK tax at source. You still have to declare and, where applicable, pay tax on the income in your country of residence.