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Posted Wed, 03 May 2023 15:12:25 GMT by Rikky Bobby
Hi. If someone transfers a UK SIPP to a QROPS say in Malta and the SIPP is worth £1,073,100 then the BCE on transfer uses up 100% of their LTA. Now their LTA is fully used up, what PCLS are they entitled to in their QROPS if they for any reason remain or return to the UK. Is it a simple 25% of the value of the QROPS uncapped, is it 25% of the standard LTA, or is it ZERO as they have used up their LTA? I am aware there are no further LTA tests on a QROPS, but PCLS is very clearly linked to LTA as a mechanism. Many thanks.
Posted Wed, 10 May 2023 12:16:46 GMT by HMRC Admin 25
Hi Rikky Bobby,

From 6 April 2017, lump sums paid by non-UK pension schemes to UK residents will be taxable regardless of the type of pension scheme paying the lump sum.
However, the taxing provision and the taxable amount will depend on the nature of the scheme making the lump sum payment.  
Please have a look at the guidance here:
Pension Tax for overseas pensions

Thank you. 

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