Australian pension refund

zygurat789

Does anyone definitively know if a refund of pension fund to a departed temporary resident now in the UK is taxable to UK tax after having suffered 35% Australian tax?

jimmo

I don’t know about “definitively” but here in the UK a refund of contributions is not income in the same way that a loan repayment is not income.

However the pension scheme administrator is liable to tax on the refund.

http://www.hmrc.gov.uk/manuals/rpsmmanual/RPSM05101570.htm

From distant memory the rationale is that the contributor will have had tax relief on the contributions and HMRC want that back.

Cook_County

I would doubt it has any effect as it is not a pension plan unless you have claimed either migrant member relief or treaty relief on a UK return.

If it is not a pension plan then you are taxed under normal UK rules on the undelying investment income, gains or offshore income gains within the foreign pension plan.

zygurat789

Cook_County wrote: »

I would doubt it has any effect as it is not a pension plan unless you have claimed either migrant member relief or treaty relief on a UK return.

If it is not a pension plan then you are taxed under normal UK rules on the undelying investment income, gains or offshore income gains within the foreign pension plan.

I don't quite understand your first para but it is teachers superann and has been subject, in Australia, to all the normal tax treatments. The beneficiary returned to the UK some years ago and the lump sum is to exit the pension scheme and will be, in part, subject to 35% Australian tax, But what happens to this amount in the UK

Cook_County

zygurat789 wrote: »

I don't quite understand your first para but it is teachers superann and has been subject, in Australia, to all the normal tax treatments. The beneficiary returned to the UK some years ago and the lump sum is to exit the pension scheme and will be, in part, subject to 35% Australian tax, But what happens to this amount in the UK

It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law.It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law.It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law.

What has been reported on UK returns since the individual returned to the UK? Wha assets are being sold to turn this into a lump sum? Are there gains or losses on the disposal of those assets?

John_Pierpoint

Does the lump sum HAVE to be taken as cash or can it be taken an an enhanced pension paid is what is currently a strong currency?

zygurat789

Cook_County wrote: »

It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law.It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law.It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law. It is not a pension under UK law.

What has been reported on UK returns since the individual returned to the UK? Wha assets are being sold to turn this into a lump sum? Are there gains or losses on the disposal of those assets?

Leaving aside your "clarification" (the phrase under UK law makes all the diference. perhaps you should give all your response next time).
The person concerned resided in Australia which is outside the UK, since returning to the UK there have been no transactions with the AUSTRALIAN pension fund and hence no information has been returned to HMRC. This is teachers superannuation, the trustees have it in their discretion which assets they mat have to sell to raise just under £1,000
but I doubt they would tell us.

zygurat789

John_Pierpoint wrote: »

Does the lump sum HAVE to be taken as cash or can it be taken an an enhanced pension paid is what is currently a strong currency?

It could but that is a long way off and the money would be very useful at this time. No one seems to be sure just how much though.

gexton

This Is Very Nice Forum And Very Useful Information About Pension For Everyone.

mcallister_3

zygurat789 wrote: »

Does anyone definitively know if a refund of pension fund to a departed temporary resident now in the UK is taxable to UK tax after having suffered 35% Australian tax?

I'm pretty sure you won't be taxed but would suggest you look into this. I have a friend who recently returned after years in Australia and he never mentioned anything about any UK tax, although he did mention he suffered 35% Australian tax on his Super... Good luck!