UK pensions - oversears 5 year rule

Ian_Ternational

I understand that there is a 5 year rule for claiming tax relief on pension contributions, but I can't work out when the 5 years begins from. Specifically, lots of resources online say it is the five teax years "after you leave the UK", but I can't work out whether "leaving" is the year you physically left the country, the final year you were tax resident in the UK, or the first year when you were not tax resident in the UK.

I moved away from my home in the UK in January 19, tax year 19/20. I was tax resident in the for the 19/20 year, and not tax resident in 20/21.

So, did I "leave" the UK in:

1. January 2020 (the time I physically left my last permanent UK home)
2. Tax year 19/20 (my final year as a tax resident)
3. Tax year 20/21 (my first year not as a tax resident)

?

There are so many different things that can make you non-resident according to the Statutory Residence / Automatic Overseas Tests that I can't work out when the clock started.

Marcon

Ian_Ternational said:

I understand that there is a 5 year rule for claiming tax relief on pension contributions, but I can't work out when the 5 years begins from. Specifically, lots of resources online say it is the five teax years "after you leave the UK", but I can't work out whether "leaving" is the year you physically left the country, the final year you were tax resident in the UK, or the first year when you were not tax resident in the UK.

I moved away from my home in the UK in January 19, tax year 19/20. I was tax resident in the for the 19/20 year, and not tax resident in 20/21.

So, did I "leave" the UK in:

1. January 2020 (the time I physically left my last permanent UK home)
2. Tax year 19/20 (my final year as a tax resident)
3. Tax year 20/21 (my first year not as a tax resident)

?

There are so many different things that can make you non-resident according to the Statutory Residence / Automatic Overseas Tests that I can't work out when the clock started.

See https://www.moneyhelper.org.uk/en/pensions-and-retirement/taking-your-pension/moving-living-and-retiring-abroad and have a look at the section headed 'Do you qualify for tax relief'. Hopefully that should clarify.

DBdoobydoo

If the country where you are resident has a Double Taxation Agreement with the UK then the Statutory Residence Test & Automatic Overseas Tests are irrelevant as your tax residence will depend on the definition of residence in the DTA.

Ian_Ternational

DBdoobydoo said:

If the country where you are resident has a Double Taxation Agreement with the UK then the Statutory Residence Test & Automatic Overseas Tests are irrelevant as your tax residence will depend on the definition of residence in the DTA.

Thanks. The tie-breaker rules say

An individual is a resident of the State in which they have a permanent home available to them (though not necessarily owned by them). If they have a permanent home available to them in both States it is necessary to look at the next test:

Which is pretty conclusive. We left when we physically left (which was on the day we completed the sale of our house in the UK).