5 Year Pension Rule

I am a British citizen but have lived in Australia for the last 20 years. However, for the whole of the 2023/24 tax year I returned to the UK to care for an elderly relative. I am now returning to Australia and plan to draw out my Australian superannuation in its entirety as a lump sum in the current 2024/25 tax year. ( throughout which I will not be a UK tax resident) . If I decide to retire to the UK in 2025/26 tax year will I have to pay UK tax on this superannuation lump sum payment ( under the 5 year rule or any other rule ) or will it be non taxable having been taken in a year when I was not a UK tax resident. I realise that interest generated from this lump sum in subsequent years in the UK would be taxable. Thank you.

Hi

Please refer to the following Guidance - Tax on foreign income and Tax if you return to the UK

Thank you

Thank you for your reply but I am still unclear after reading through the links provided. Could you therefore please clarify the following scenario- I left the UK permanently in 2003 and have not been UK tax resident again until 2023 as detailed below. I returned to the UK in February 2023 to care for an elderly relative having vacated my home in Australia and put my belongings in storage. I remained in the UK until 5 April 2024. Between 5 April and 19 Aug 2024 I travelled extensively in Europe. I also spent 48 days in the UK in this period but I am not a UK tax resident under the SRT. I will arrive back in Australia on 20 August and will remain there until at least May 2025. As I am 62 I plan to retire and withdraw all my Australian superannuation as a lump sum in December 2024. Can you please advise if UK tax would be payable on this withdrawn superannuation in the following two scenarios - 1. I return to the UK permanently in May 2025. 2. I stay in Australia permanently from 20 August 2024. Thanks

Hi Popeye58 Somers,
We cannot comment on any form of calculation/example or scenario, whether fact or fiction. We can only point you the direction of the guidance, so that you can review the guidance and to allow you to make an informed decision.  If, after that you still need advice, you need to employ the services of a financial adviser.
Thank you.

Your comments are noted thanks. Can you please clarify the following guidance - Guidance headings 1. Tax on foreign income - 2. Foreign income that's taxed differently - 3. Pensions- Here it states 'You have to pay tax on pensions if your resident OR WERE RESIDENT IN ANY OF THE PREVIOUS 5 TAX YEARS'. Is this a standalone requirement or is it also subject to the requirement that ' You were a UK resident in at least 4 of the 7 tax years before you moved abroad'. (from guidance headings 'Tax if you return to the UK - What to do when you are back - If you return to the UK within 5 years'). Thanks

Hi ,
 

This is a standard requirement .

 
Thank you .

Hi, Sorry by "standard requirement" do you mean 'standalone' requirement. Thanks

Hi
This is the first requirement for the pension to be tax free so if he 5 yeare rule not met then you would go no further on any other conditions.