How much tax will I pay on a foreign pension lump sum?

See_Em

Hi experts.
I am UK resident for tax purposes and have retirement funds in an Australian Superannuation scheme. How much tax can I expect to pay on a lump sum from this scheme when I complete a foreign income self assessment? Is there a 25% tax free amount and what about the personal allowance of 12500?
There is no other income apart from a small amount of interest (<1000) on bank savings in UK which is under the taxable limit for basic rate tax payers.

Marcon

This should give you all you need to know: https://www.taxation.co.uk/articles/australian-superannuation-funds-and-uk-pensions

See_Em

Marcon wrote: »

This should give you all you need to know: link

Thanks - I understand the funds will be taxable in UK. The question is more about the rate and any personal allowance or if the entire sum is taxed.

sheramber

https://www.gov.uk/government/publications/self-assessment-foreign-sa106

colsten

You'll be taxed according to your total income. You only have one personal allowance which applies to your total income

See_Em

colsten wrote: »

You'll be taxed according to your total income. You only have one personal allowance which applies to your total income

So if the foreign pension is my only income, then 12500 would be tax free?

Dazed_and_confused

Except it won't be your only taxable income. In your op you referred to some bank interest which will also have to be taken into account.

Might not change your overall tax liability but you cannot pick and choose what taxable income to declare.

See_Em

It's been suggested that these funds may in fact be treated as Employer-Financed Retirement Benefits (EFRBS) and not pension income as previously thought. Any pointers on how to work out if they comply and again what the tax situation is on lump sums? What about FSR?
The funds consist of employer and personal contributions accumulated whilst outside the UK but will be paid now to a UK resident.

xylophone

https://www.gov.uk/hmrc-internal-manuals/pensions-tax-manual/ptm021000


Overseas pension schemes
Section 150(7) Finance Act 2004

An overseas pension scheme is a pension scheme which is established outside of the UK, is not a registered pension scheme, and satisfies certain regulation and recognition requirements. An overseas scheme may be an EFRBS depending on the facts.

Such a scheme may have many variations of benefits and international taxation. These can interact with the UK system of reliefs and tax charges, in which case they will be mentioned with the relevant guidance in this manual.

Specific guidance on international aspects of pension schemes is at PTM110000.

seems relevant to the situation.