Overseas withdrawal from SIPP

We live in Canada and have a UK SIPP - under the Double Taxation treaty we pay tax in Canada on annual income from SIPP, but then withdrawals are tax free. How can we ensure no tax on withheld in UK when withdrawing funds.

Hi,

You will need to submit a claim for relief under the double taxation treaty.

Double Taxation: Treaty Relief (Form DT-Individual)

Please note though, this form cannot be approved until the pension is actually in payment so it is likely that tax will be deducted in the first instance, to then be claimed back.

Thank you.

Hi - thanks for the information. A couple of supplementary questions - once the form has been completed and approved with that apply to all subsequent payments ( from the same source) or do we have to submit a claim for refund after every payment received? Also, what is the maximum that can be withdrawn as a regular payment from a SIPP? Many Thanks

Hi
Once HMRC have the Canadian tax authority validated DT individual form and the pension payer has notified HMRC of the commencement of the pension payment, an NT tax code will be issued, to instruct the pension provided to stop deducting tax and refund any tax deducted from the start of the tax year.  
This NT code will be applied each tax year to the pension payment, so that no tax is deducted.

Hi - thank you for the clarification. A further question - when I have received my first payment ( with tax withheld in the UK), completed the Form-DT Individual and had it approved by both HMRC and CRA, refund applied for and the NT tax code issued - are there any restrictions regarding how much each subsequent withdrawal can be ( either GBP amount or % of the fund) or how often withdrawals can be made (every week?)? I am presuming that since there will be no UK tax payable there are no restrictions as far as HMRC are concerned. Thanks,

Hi DaisyW

HMRC dont put any restriction on the withdrawal but you may want to check with the pension company.

Thank you

Hi - once I have the Form-DT Individual completed and approved by CRA, is there an email address that I can send the completed forms to or do we have to use Canada Post/Post Office? Also, is there an estimated time that it takes HMRC to review and approve submissions? Thank You

Hi,

The form has to be physically sent to us. Our timescales are always changing and you should allow a minimum of 10 weeks before chasing up your claim.

Thank you.