Are SIPP withdrawals taxed at source?

NSG666

Just spoke with HMRC about another issue but asked them about the situation of becoming a tax resident outside of the UK and it is the case that the P85 form is used and that in turn will generate a NT tax code meaning no tax deductions from your SIPP (and I guess any other pensions too).

The CRA Mordko referred to is presumably something that is issued by your tax residence country to prove you are no longer a UK tax resident and used to support the P85 otherwise they'd just be relying on the honesty of the individual which might lead to abuse.

Thanks again Mordko

bostonerimus

If you are a UK non-resident and you get payments from a UK SIPP it will not be taxed in the UK, but will be taxed where you live. You can file one of these to claim the relevant tax treaty exemption.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/926590/DT-Individual.pdf

There might be differences for Government pensions or lump sums so check the relevant Double Tax Treaty.

If you have a QROPS you'll have to investigate the similar situation for the country where the QROPS exists and wherever you live. FYI IMO QROPS are at best expensive and basically useless for most people and at worst simply scams.