Relevance of Annual Allowance and MPAA to non Residents Contributing into UK Pension Schemes

I am and have been for many years non UK resident and do not claim tax relief for my UK company pension contributions as my UK income is trivial and is covered by personal allowance. During 23/24 I have made pension contributions to my UK employer’s pension scheme and will also do a significant pension drawdown from my separate UK SIPP. I will continue to make the same level of contributions into the company scheme after the SIPP drawdown. Can you confirm that as I am non resident and not claiming tax relief on the contributions that: the Annual Allowance and its tapering provisions for higher earners do not apply to me. And that the MPAA post-drawdown provisions are not relevant to me either as I do not claim tax relief on my contributions. Two disclosure questions in relation to the tax return that I will need to submit to get the tax refund on the pension drawdown. On form SA100, Tax Return, please confirm I don’t need to disclose the pension contributions in the Tax Relief section (‘Paying into registered pension schemes and overseas pension schemes’) as I am non resident and not claiming tax relief. In addition on form SA101, (the Additional Information sheet) please confirm, I don’t need to complete question 10 & 11 (amounts in excess of the annual allowance) in the Pensions Savings Tax Charges section - again because non resident and not claiming tax relief for pension contributions.

Hi Clarky55,
The guidance at PTM044100 advises when contributions qualify for tax relief and the definition of a 'relevant UK individual'.
You need to be both an active memebr of  a registered pension scheme and a relevant UK individual.
 If you do not meet both criteria, then no UK tax relief is available.
PTM044100 - Contributions: tax relief for members: conditions
Thank you. 

Thanks for the reply. I definitely cannot claim tax relief on my pension contributions to the UK registered pension scheme as I am not a relevant UK individual. Can you confirm, however, that for an individual who is not a relevant UK individual and who therefore cannot claim tax relief on the pension contributions that: 1) the Annual Allowance and its tapering provisions for higher earners do not apply (even if there is significant foreign income but only minimal UK taxable income as a non-resident), and 2) the MPAA post-drawdown provisions are not relevant either as the contributions are not eligible for tax relief. Thank you

Hi,

1. You are correct. Tax relief is only available if your are an active member of a registered pension scheme and are a relevant UK individual, in the tax year in which the contribution is paid. If you do not meet this criteria then there is no pension payment relief available.
2. Money Purchase Annual Allowance (MPAA) would not apply, as the contributions are not eligible for relief. You can see guidance here: Abolition of Lifetime Allowance and increases to Pension Tax Limits

Thank you.