SIPP if moving overseas

kerrick

A SIPP information website included the following statement "if you leave the UK you can no longer buy any new units in UK Authorised funds for your SIPP". Is "UK Authorised" the same as "UK Reporting Status"? Most of the popular funds and ETFs e.g. iShares, Vanguard have UK Reporting Status. If you do leave the UK and can no longer buy any funds with UK Reporting Status, what's left that you can buy!? Do you have to try to find funds and EFTs without UK Reporting Status?

Marcon

kerrick said:

A SIPP information website included the following statement "if you leave the UK you can no longer buy any new units in UK Authorised funds for your SIPP". Is "UK Authorised" the same as "UK Reporting Status"? Most of the popular funds and ETFs e.g. iShares, Vanguard have UK Reporting Status. If you do leave the UK and can no longer buy any funds with UK Reporting Status, what's left that you can buy!? Do you have to try to find funds and EFTs without UK Reporting Status?

You may not be able to contribute at all. Good summary here of the relevant rules: https://www.expertsforexpats.com/answers/pensions/can-i-contribute-to-a-sipp-when-a-non-resident/

kerrick

Marcon said:

kerrick said:

A SIPP information website included the following statement "if you leave the UK you can no longer buy any new units in UK Authorised funds for your SIPP". Is "UK Authorised" the same as "UK Reporting Status"? Most of the popular funds and ETFs e.g. iShares, Vanguard have UK Reporting Status. If you do leave the UK and can no longer buy any funds with UK Reporting Status, what's left that you can buy!? Do you have to try to find funds and EFTs without UK Reporting Status?

You may not be able to contribute at all. Good summary here of the relevant rules: https://www.expertsforexpats.com/answers/pensions/can-i-contribute-to-a-sipp-when-a-non-resident/

That's a different issue to the one I was asking. You can still have company director pension contributions and in any case if you have uninvested cash or dividend income in your SIPP you may still want to buy funds or ETFs. 

DBdoobydoo

I live in France & am tax resident there but return to the UK to do some part time work & am paid under PAYE. I contribute to a SIPP which reduces the UK income tax that I pay on my UK income. I am post state retirement age & will fully retire in 2-3 years so I am just holding cash in my SIPP. My plan is in due course to fully Iiquidate my SIPP which will then be taxable in France at 7.5%.

kerrick

Maybe my question wasn't clear. I'll try again:
Is "UK Authorised" the same as "UK Reporting Status"?
Most of the popular funds and ETFs seem to have UK Reporting Status. If the information is true and you cannot buy these funds in your SIPP if you are not UK resident, then do you have to try to find funds and EFTs that do not have UK Reporting Status?
Thanks if anyone does know the answer.

DBdoobydoo

kerrick said:

Maybe my question wasn't clear. I'll try again:
Is "UK Authorised" the same as "UK Reporting Status"?
Most of the popular funds and ETFs seem to have UK Reporting Status. If the information is true and you cannot buy these funds in your SIPP if you are not UK resident, then do you have to try to find funds and EFTs that do not have UK Reporting Status?
Thanks if anyone does know the answer.

How would they ever know that you were not a UK resident unless you tell them? Are you legally obliged to tell them?

kerrick

Off topic again but you probably are required to tell them. When you want to drawdown getting the tax right depends on declaring your country of residence and paying tax where it's due and using the double taxation treaties so you don't pay twice. 

Now, the original question again: Is "UK Authorised" the same as "UK Reporting Status"?
Most of the popular funds and ETFs seem to have UK Reporting Status. If the information is true and you cannot buy these funds in your SIPP if you are not UK resident, then do you have to try to find funds and EFTs that do not have UK Reporting Status?
Thanks if anyone can shed any light on the actual question!

bostonerimus

I think an "Authorized Fund" has to be established in the UK. A "UK Reporting" fund does not necessarily need to be in the UK, examples are US Vanguard ETFs which are domiciled in the US, but also do all the paperwork to be UK reporting.

Generally it is a bad idea to try to make cross border pension payments as taxation becomes a nightmare and there just aren't the mechanisms to deal with it.

If you are going abroad you should inform the relevant tax authorities. International tax fraud is something to be avoided.

kerrick

bostonerimus said:

I think an "Authorized Fund" has to be established in the UK. A "UK Reporting" fund does not necessarily need to be in the UK, examples are US Vanguard ETFs which are domiciled in the US, but also do all the paperwork to be UK reporting.

Generally it is a bad idea to try to make cross border pension payments as taxation becomes a nightmare and there just aren't the mechanisms to deal with it.

If you are going abroad you should inform the relevant tax authorities. International tax fraud is something to be avoided.

Thank you. So an "Authorized Fund" is different from a "UK Reporting" fund. 

Any idea whether it's correct that if you are not UK resident "you can no longer buy any new units in UK Authorised funds for your SIPP" 

It seems a strange distinction that there is this specific type of fund you cannot purchase with any cash in your SIPP. Maybe the claim is just wrong?

bostonerimus

I would ask your SIPP provider directly what you can do as a UK non-resident. HMRC certainly allow you to make some limited contributions to UK pension funds for 5 years after you become a UK non-resident, but the tax situation is messy. In these circumstances it's usually best to look at tax advantaged savings available where you are resident and paying income tax. The best thing you can do is to apply to pay Class 2 voluntary NI.

kerrick

The tax position and contributions is sorted and cleared.

The only uncertainty is the fact that according to one SIPP advice website if you are not UK resident you cannot buy any new units in funds or ETFs that are "UK Authorised".  It seems a strange and specific limitation. I was hoping someone with knowledge of this area on here may be able to either confirm this is the case and why, or that this statement is incorrect.