If you are resident overseas, the taxation of your pension income will largely depend on what type of pension is being received and the tax rules in your country of residence. 

 

If you reside in Italy, under the terms of the UK/Italy Double Tax Treaty, Occupational and Private Pensions and annuities are taxable in Italy if you are resident there. The income is added to other income and taxed at the scale rates. 

 

If, however, you have a UK Government Service Pension, it will remain taxable in the UK even if you are resident in Italy. 

 

Tax credits are available in Italy in relation to pension income, although the amount of credit available depends on the level of pension you receive. The credit disappears on pension income in excess of €55,000. 

 

Your lump sum will be taxable if it is received when you are resident in Italy.