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 Also, what is the maximum that can be withdrawn as a regular payment from a SIPP?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.

Hi - I am wondering if we need to submit a Form-DT Individual for each income source or if we can do one just for the first income source we receive? I assume once our Tax Code is changed to reflect our overseas status and the we can receive income tax free, that it will apply to all sources and any new income source would see the current tax code? Many Thanks,

Hi
A DT individual can be used to declare multiple pension sources including state pension on the one form.  It is only where a new pension source commences, that has not previously been declared before, will a further DT individual be required.

Hi - I know you can't comment on specific cases but what is the generally expected response time to a DT Request form? We have forms that were submitted in June and July that are still in progress although the HMRC website where you can check the expected reply date say we should have received replies by now (text says 'you should have received a reply by 14 July 2024 and Aug 13 2024). How can we chase up? Thanks,

Hi, sorry for the jump to Italy, but the topic is similar. We are Italian tax residents with a uk - NT code. My uk non-gov pension is NOT in drawdown. I would like to take our PCLS which in the UK should be tax free, but I am advised will be treated for income tax in Italy. 1. Please confirm 2. I am advised that QROPs will no longer provide a shield to this - confirm Thank you. N

HI
We do have a large backlog at present, you can telephone 0300 200 3300 to chase these up.

Hi nmoran98,
Please refer to Tax on your UK income if you live abroad.
We cannot give specifics to your questions as further info is required and you would need to contact us direct to discuss
Thank you.