SIPP taxed in UK if not tax resident?

martesmartes

If you are not UK tax resident  (resident for tax overseas) do you withdraw income from your SIPP without paying any UK income tax? If so, and your country of residence does not tax investment gains, does that mean you can withdraw income from your SIPP tax free? Or is that just not permitted by the rules for some reason?

Bostonerimus1

What dual tax treaty, if any, is applicable?

martesmartes

Double Taxation Treaty says pensions and other similar remuneration paid in consideration of past employment are taxable in the country of residence.

Bostonerimus1

File your DT-individual and then comply with your local tax regulations.

martesmartes

Bostonerimus1 said:

File your DT-individual with HMRC and then comply with your local tax regulations.

File DT-individual with HMRC? What is that?

Bostonerimus1

Google is your friend.

martesmartes

"Anti-avoidance: If you become UK tax resident within five years then, if you've taken more than £100k, you pay tax in the UK on the pension you took out while away when you get back."

If you become UK resident within 5 years of what? Within 5 years of leaving or 5 years of withdrawing income while overseas? Say you have been out the UK for 10 years, then take that £1m out your SIPP. Do you then still have to remain non UK resident for another 5 years after that?

Sam_666

All your answers are on hmrc website, none of it state secret.

hoc

Sam_666 said:

All your answers are on hmrc website, none of it state secret.

Answers to most questions are already on the internet but the point of a forum is for those who know to share in an understandable way.

Bostonerimus1

There are many caveats and "what ifs" in the OP's situation. But their starting point should be arranging SIPP drawdown and understanding any issues around TFLS not being tax free where they live...maybe not an issue for the OP. Then file the DT Individual which will establish things like the OP's tax residency. If they return to the UK then they will have to reassess their tax situation.