non UK resident with UK pension plan

moneyguy2016

Hello, I used to work in the UK in the 80’s and started a pension plan which is no longer funded but has been growing quietly since I left the UK.

How can I cash it out as a non resident, tax efficiently?

I don’t need it for my retirement as I have other pension plans outside the UK and I am not in any particular hurry to use the payout, although it would be nice for vacations :-)

I have not been a UK tax resident since 1999 and have not been back since.

Thanks!

molerat

How old are you is the first question and secondly what value and pension type ?

moneyguy2016

I'm 60, valued about 100K in total and they're personal pension plans.

I'm told that if I can take a lump sum payment, 25% tax free. I believe I can also take out smaller sums annually and keep the taxable withdrawal lower, but have to claim back later. Trying to find out also if I am entitled to a personal tax allowance when I do the return.

Thanks!

dunstonh

moneyguy2016 wrote: »

I'm 60, valued about 100K in total and they're personal pension plans.

I'm told that if I can take a lump sum payment, 25% tax free. I believe I can also take out smaller sums annually and keep the taxable withdrawal lower, but have to claim back later. Trying to find out also if I am entitled to a personal tax allowance when I do the return.

Thanks!

You will be taxed based on the tax situation of the country you are in. You have to forget UK taxation at this stage. You need to look at taxation where you are.

Malthusian

I would have thought the first question is what country you are tax resident in.

As Dunstonh says it is very important to understand that what would be a tax-free payment to a UK investor may not (in fact very likely would not) be tax-free in your country.

moneyguy2016

It's the other way around. Foreign sourced income is not taxed if received outside the tax domicile I'm in.

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/528018/RDR1-residence-domicile-remittance.pdf

page 38 seems relevant.

moneyguy2016

I am not a UK resident nor UK tax payer (I was until 1999).
I have a UK pension (a few) but have not been funded it since 1999, left to grow.
I now want to take it out but efficiently from a UK tax point of view. I have a UK bank account so I can receive the 'income' without incurring tax liability in my own country.

I'm considering smaller cash withdrawals over a few years to minimize the tax liability on the 'taxable' portion of the withdrawal. Hopefully someone has a better suggestion.

dunstonh

I now want to take it out but efficiently from a UK tax point of view. I have a UK bank account so I can receive the 'income' without incurring tax liability in my own country.

The bank account the income is paid to does not change the tax status.

The tax laws of the country you are resident in decide that. There may be tax treaties between the UK and the country you are in. However, it is impossible to say without knowing the country you are in.

moneyguy2016

I already said the tax laws in my country allow for tax free income earned and received in foreign country. The pension payments from a UK pension paid into a UK account will not be taxed in my country so it's not relevant here. I'm looking for a UK tax solution.

Malthusian

Why are you so reluctant to say which country you are tax resident in? Without that information it is impossible to answer your question with any confidence.