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MareePP's avatar
MareePP
Experienced Partner
4 days ago

Foreign Pension UPPs

I have clients where one spouse has more than one UK pension.  They are entitled to the 8% UPP on their state pensions.  Each pension is entered separately.  On the form itself I get the correct allocation between pensions with a UPP and those without but I keep getting an error that the UPP is incorrect.

 

There is this note at the top of the foreign pension schedule but other than adding the pensions separately which I have done there is no "Add section".

 

Don't include foreign pensions or annuities with or without Undeducted purchase price amounts in the same section. If you have more than one type of pensions or annuities, click Add section.

 

I then get an error saying that the UPP amount is incorrect.  On the spouse's return where there is only the one pension I do not get an error.

 

Deductible amount of UPP of foreign pension or annuity is incorrect

CMN.ATO.IITR.730356

When the sum of all foreign pension or annuity assessable amounts in the Income Details schedule (Foreign pension or annuity gross amount less Foreign pension or annuity deductible expenses) is positive, the Deductible amount of UPP of foreign pension or annuity must equal the lesser value of the sum of all adjusted Foreign pension or annuity undeducted purchase price amounts or sum of all foreign pension or annuity assessable amounts; Otherwise, the Deductible amount of UPP of foreign pension or annuity must be set to zero. Note: The adjusted Foreign pension or annuity undeducted purchase price for each pension (or annuity) is determined as either; the lesser value of the foreign pension or annuity assessable amount or Foreign pension or annuity undeducted purchase price, when the foreign pension or annuity assessable amount is positive; or zero when the foreign pension or annuity assessable amount is zero or negative.

 

Net foreign pension or annuity income with an undeducted purchase price is incorrect

CMN.ATO.IITR.730354

The Net foreign pension or annuity income with an undeducted purchase price must equal the sum of all Foreign pension or annuity gross amounts less Foreign pension or annuity deductible expenses provided in the attached Income Details schedule, where the Foreign pension or annuity undeducted purchase price is positive

 

Any ideas?

 

Thanks

1 Reply

  • Hello, 

    Thanks for that MareePP​ 

    Based on the validation messages, this appears to be an ATO validation or data-entry check 

    Please review the following amounts in the return:

    • Enter all foreign pension gross amounts as whole dollars, using the normal tax-return rounding rules. Also check that any deductible expenses do not contain cents.
    • For each pension with a UPP, calculate the adjusted UPP as the lower of the gross amount less expenses or the UPP amount.
    • Ensure D11 equals the total adjusted UPP for pensions with a UPP. Pensions without a UPP should not be included in this calculation.
    • Ensure Item 20, label D, contains the gross amount less expenses for pensions with a UPP.
    • Ensure Item 20, label L, contains only the net amounts for pensions without a UPP.

    These checks should ensure the figures in the foreign pension schedule agree with the amounts reported at D11 and Item 20.

     

    You can check out these link as well or double check with ATO: 

    https://www.ato.gov.au/forms-and-instructions/individual-tax-return-2026-instructions

    AU Tax 25 - Item D11 - Deductible amount of undeducted purchase price of foreign pensions or annuities 2025 - https://practice-support.myob.com/taxau2025/item-d11-deductible-amount-of-undeducted-purchase-

     

    Kind Regards, 

    MYOB Team

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