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Bringing Overseas Pension into UK
pn_mather
Posts: 2 Newbie
Hello,
I've posted this on the Tax forum but thought that I might as well post it here too.
I am after some advice regarding the tax situation on our overseas pension. I have been going around and around on the internet and have had conflicting advice from a couple of tax experts.
Me and my wife worked in the Cayman Islands between 2002 and 2005. We have been back and working in the UK since then.
Whilst we were in Cayman my wife received a pension from her employer in the form of an investment portfolio with the local pension scheme provider. Now that we have left Cayman we are able to cash in the investment and bring it back to the UK.
When we returned the investment was worth around US$20,000. It is now worth around US$28,000.
I have a few questions - do we need to pay tax on this if we bring it back? My wife earned the money whilst not resident in the UK so does this mean we would pay no tax on the value of the investment at the time we came back. Would we pay tax on the US$8,000 gain? Is this a capital gain or treated as income? Should we be declaring this investment and paying tax on any gains whilst it is still in Cayman?
Huge thanks in advance for any help.
I've posted this on the Tax forum but thought that I might as well post it here too.
I am after some advice regarding the tax situation on our overseas pension. I have been going around and around on the internet and have had conflicting advice from a couple of tax experts.
Me and my wife worked in the Cayman Islands between 2002 and 2005. We have been back and working in the UK since then.
Whilst we were in Cayman my wife received a pension from her employer in the form of an investment portfolio with the local pension scheme provider. Now that we have left Cayman we are able to cash in the investment and bring it back to the UK.
When we returned the investment was worth around US$20,000. It is now worth around US$28,000.
I have a few questions - do we need to pay tax on this if we bring it back? My wife earned the money whilst not resident in the UK so does this mean we would pay no tax on the value of the investment at the time we came back. Would we pay tax on the US$8,000 gain? Is this a capital gain or treated as income? Should we be declaring this investment and paying tax on any gains whilst it is still in Cayman?
Huge thanks in advance for any help.
0
Comments
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http://www.hmrc.gov.uk/manuals/eimanual/eim74500.htm
The situation looks complex! Why not go straight to the horse's mouth and put your question to HMRC in writing?
http://www.rossmartin.co.uk/tax-guides/663-wrting-to-hmrc-new-addresses0
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