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Posted Wed, 10 May 2023 08:18:34 GMT by CharlieH Elsen
I am a UK national and I worked abroad in Romania, The Netherlands and Denmark from 2000 until 2015. In 2015 I returned to live in the UK permanently. My international employer enrolled me in their contributory retirement savings plan in July 2001 - 2015. I paid in country taxes on my salary before my contributions were made. Since 2015 my employer transferred the frozen pot to sit in trust in the Isle of Man ( I had no say where they put it) - until I leave the company. I am now coming up to planning for my retirement and I am finding it very hard to get any advice on how this lump sum is to be reported and tax calculated assuming that I remain as a UK resident. My (US) employer simply repeats that it is a non UK Retirement savings plan. I understand that the regulations changed recently regarding lump sums, but I have also read that as contributions were made before 2017 other rules may apply. Can you point me in the right HMRC guidance please
Posted Tue, 16 May 2023 12:30:20 GMT by HMRC Admin 32

As the pension pot is held in the Isle of Man, we need to review the double taxation agreement with the UK and the Isle of Man. 

Isle of Man: tax treaties

Article 17 covers pensions and advises that pensions and lump sums paid to a resident of the UK, shall only be taxable in the UK. You will need to submit a request for a certificate of residence.

How to apply for a certificate of residence to claim tax relief abroad

You will need to include details of the pension lump sum, including a gross amount. HMRC will send you a certificate of residence, which you should send to the Isle of Man tax authorites, to claim repayment of any tax deducted from the lump sum.

Thank you.

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