Taking Flexi-Access Drawdown

FatherAbraham

iwharrier wrote: »

Thanks for the input all.
The situation is that I am outside EU. Vietnam to be precise.
Not working so have very little income outside of military pension and ISA Income. So am tied to UK taxation regardless of any double-taxation agreement but growth and income from ISA is allowed to remain tax-free even as a non resident.
It is not advisable to move funds to Vietnam as it tends to be a one-way transfer and very difficult to move it out of country. Pension income doesn't seem to be treated as earned income - but that depends on who you ask. :mad:
It is looking increasingly likely that I have to take the 25% PCLS as the ii platform is unable to do otherwise. But then I do not have access to ISA contributions to protect income from tax. Won't be entertaining QROPS because they are poison in my humble opinion.
I won't be going down the financial advice route here as it is more akin to the wild west.
ah well, I'll go and have another coffee.

If you're not UK tax resident, doesn't that mean that your pension withdrawals will not be subject to UK taxation anyway? It may be that Interactive Investor operates PAYE on your non-PCLS withdrawals, but it you aren't subject to UK taxation because of noon-residency, then HMRC would presumably have to give you that withheld tax back.

You seem concerned that you won't be able to put your withdrawn capital into a UK ISA, but if you're not UK resident, doesn't that mean that your investment returns from a GIA (General Investment Account) will be free of UK taxation?

A UK ISA can't protect your investment returns from Vietnamese taxation any more than a UK GIA can. Vietnam doesn't recognise UK ISAs.

dunstonh

Does Vietnam recognise the ISA tax wrapper? Most countries do not and treat them either as unwrapped holdings or foreign investments (where taxation is different to home domiciled investments).

It is looking increasingly likely that I have to take the 25% PCLS as the ii platform is unable to do otherwise.

IIRC, II supports phased flexi-access drawdown.