UK Tax on Australian Superannuation

Hi HMRC Admin 10, thank you for the response. I believe that I am eligible for split year treatment. I will arrive in UK on 16 November and will be resident in UK from 16 November. The lump sum will be paid to my Australian bank account before 5 November. Does this mean that the lump sum will not be taxable in UK?

Hi,

If you claim split year treatment and the payment is made before you are resident in the UK, then it will not be taxable in the UK.

Thank you.

I am a dual citizen of Australia and UK but now residing in UK. I am also UK domiciled for tax purposes. I worked in Australia for 5 years from 2003 to 2008. I have taken serious ill health retirement and I am eligible for a tax free lump sum from the pension and a tax free lump sum from the pension death benefit. As these two lump sums are tax free in Australia and I qualify for serious ill health retirement, will I be subject to UK tax and do I need to declare these lump sum payments in my self assessment?

Hi Susi,
Yes, under Article 17 of the double taxation treaty they are taxable here.
Please aslo refer to helpsheet 264 as you state you have domicile status: 
Remittance basis 2021 (HS264)
Thank you. 

Hi, I have posted here before, but to be honest, I am not really following the threat. I have been in living and working Australia for quite a time, and I am now considering returning to the UK in retirement. Retirement for the over 60s in Australia is generally tax free, so I haven’t really given much consideration to the matter. There is a requirement for UK residents to pay tax on any lump sum received from superannuation. Therefore, if I need to take a lump sum, doing so before I move to the UK would seem sensible. It appears to me that a small about of planning could negate my need to pay any tax; by not being a UK resident in the year that I receive the lump. In the web site advice it is written. 2.2 Second automatic overseas test. You’ll be non-UK resident for the tax year if you were resident in the UK for none of the 3 tax years before the current tax year, and spend fewer than 46 days in the UK in the tax year. Am I correct in assuming that if I spend less than 46 days in the UK (I do not have family ties or a residence); for example, if I move back on 1st March 2024 I will pay no UK tax on any lump sum that I take in the current tax year.

Hi
If you meet the conditions specified at point 2.2, then no tax will be due.

I read somewhere that if money is withdrawn from an Australian pension fund as a lump sum by a dual citizen now resident in the uk and is placed in an Australian bank deposit account, that this is not taxable as it is considered as savings , is this correct?

Hi,

A lump sum payment would not be taxable in the UK, but regular periodic payments would be.

Thank you.

So are you saying that if you took any amount of lump sum from a super fund based in Australia say once a year , there would be no tax liability in the uk whether it was deposited In an Australian bank account or remitted to the uk, as long as it was not a regular , say monthly , withdrawal?