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Posted Fri, 05 Apr 2024 14:26:48 GMT by Daiput
It seems there are an awful lot of people on here that are affected by what seems a double taxation on Australian pensions. As an Australian citizen and past resident, I was encouraged to put some of my already taxed savings into my superannuation fund. As this was already taxed on the way in , I was able to draw the entire fund tax free at pension age . Having returned to the uk (after four years) as a permanent resident now find that withdrawals are taxable even though all of the fund was made up from savings accumulated in the uk from taxed income . So as an instance say I earned when I was originally uk resident £2000 one month, after tax say £1600 of which I saved £800 in the uk . When I moved to Australia I put that £800 (of which I had already paid £200 in uk tax) Into my super fund. But having returned to uk and wish to draw it I will have to pay a further £160 in income tax (£800 x 20%) so my original £1000 earned is now only worth £640 having paid £360 in tax. This is totaly unfair and will affect many pensioners who have superannuation funds in Australia, taxing them twice which is unjust. Who can we all write to and lobby to have this ruling investigated and changed?
Posted Fri, 05 Apr 2024 15:09:41 GMT by Carnoustie68
I refer to the info below https://www.gov.uk/government/publications/pension-tax-for-overseas-pensions/pension-tax-for-overseas-pensions I have read the section in relation to lump sum withdrawals per below. If the scheme is an overseas pension scheme (which has a specific meaning as set out in PTM112200) part or all of the lump sum may be paid tax free. If the lump sum is the equivalent of one of the authorised lump sums paid under a registered pension scheme it should receive the same tax treatment. For example, for the equivalent of an uncrystallised funds pension lump sum paid to a member aged under 75 (see PTM063300), 25% will be tax free and 75% will taxable as pension income. I have a plan in accumulation with “Australian Superannuation” which is a large superannuation fund in Australia. It is open to the public to join. Please can you confirm or assist in explaining any guidance regarding if lump sum withdrawals are taxed in UK on the basis of 25% tax free 75% taxable. I am uk tax resident. Many thanks in advance
Posted Mon, 15 Apr 2024 14:32:31 GMT by HMRC Admin 19
Hi Daiput,

As this is a matter of legislation you would need to take the matter up with your MP.

Thank you.
Posted Mon, 15 Apr 2024 14:49:50 GMT by Carnoustie68
Could agree with you more Daiput Not only that if, one went in the other direction and transferred a uk pension into a qrops in Australia, I understand it can be withdrawn free of Uk tax after 5 years. A totally ludicrous situation compared to ours! I’m not sure that the rules were purposely set out to penalise our situation in such a way and I wonder if it makes sense to write to a MP. I wonder also if HMRC are interpreting the rules correctly ?
Posted Sun, 09 Jun 2024 16:40:13 GMT by Peter Harper
I am a UK citizen shortly able to access my Australian superannuation (around £100k). Am I correct in saying that if I take this in regular pension payments that they will be taxable in the UK provided they exceed my personal allowance? If I took the superannuation as a lump sum would it be taxed in the UK and if so would the first 25% be tax free? If so could I take the 25% tax free and then take the rest and pay UK tax at the appropriate level to my annual income?

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