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Posted Tue, 31 Jan 2023 07:42:48 GMT by Richard Gamble
Hi, I am a dual British and Australian citizen (born in the UK, lived in Australia for 9 years). I returned to the UK in June 2022 and am in the process of transferring my savings from Australia to the UK where we intent to reside. Can you confirm the tax implications of this transfer? Thanks
Posted Fri, 03 Feb 2023 13:01:07 GMT by HMRC Admin 19

Capital transferred to the UK is not taxable, but income arising in the tax year may be subject to tax.  

You will need to review the residence, domicile and remittance guidance to determine your residence position and whether split year treatment would apply.

Residence, domicile and the remittance basis: RDR1

Thank you.
Posted Sun, 12 Feb 2023 15:33:33 GMT by Nigel Giles
I have read my HMRC Admin responses on this subject and require a straightforward waffle free answer to the following. I worked in Australia for the Health service from 1992 to 2002 and paid into a superannuation scheme called the State Authorities Superannuation Scheme (SASS). When I left and returned to the UK in 2001 (now a UK resident), I became a "deferred member" and the superannuation fund continued to accumulate. Now I have reached retirement age (60) and no longer in the work force, so I am entitled to a lump sum payment from this scheme. Please correct me if I am wrong anywhere in the next few paragraphs. If this lump sum benefit is "rolled over" into another regulated Superannuation Scheme in Australia, which allows monthly withdrawals (the current SASS Fund does not), at the point of "roll-over" I am still not liable to declare or pay any tax to the UK GOV. However, if I then withdraw a monthly "pension / income stream equivalent of GBP£4000.00" (call it what you like), I will be liable to declare and / or pay UK tax here in the UK, at the point of withdrawal, not necessarily when transferred to the UK. Also, I assume this income will be treated the same way any normal income stream to a UK resident and I would be entitled to receive the first £12570.00 tax free, then pay 20% on the remainder. I also understand that I would receive a foreign tax credit for tax paid in Australia. I look forward to some clarity and straightforward responses from a HMRC Admin. Best Regards.
Posted Wed, 15 Feb 2023 13:24:10 GMT by HMRC Admin 32

Article 17 of the UK and Australia double taxation agreement advises that lump sum payments arising in Australia are taxable in Australia. Periodical payments paybable to an individual at stated times, from an Australian pension (including government pensions), who is resident in the UK, will be taxable in the UK.

UK/ Australia Double Taxation Convention

Foreign income is a criteria for completing Self Assessment Tax Returns each year. You would need to convert your pension to pounds sterling and declare on supplementary page SA106, along with the main tax return.  

You would be able to claim a foreign tax credit relief, where foreign tax is deducted. As you are resident in the UK, you would be entitled to a personal allowance of £12570, on incomes below £100000.00.

You can register for self assessment at:

Register for Self Assessment

Thank you.

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