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Posted Tue, 10 Jan 2023 08:17:43 GMT by Paresh Panchal
Being a USA resident, I know my local IRS rules mean that if you have a cost to recover from your pension plan, you can exclude part of each such payment from income, as a recovery of your cost. This is a tax-free part of the payment, whilst the rest of each such payment is taxable. Now, I have a SIPP pension in the UK, from which I am receiving irregular/variable payments each year. Does any such "cost recovery" rule exist within the UK HMRC, that would allow me to similarly exclude part of each (SIPP) payment from UK tax ?
Posted Fri, 13 Jan 2023 11:52:54 GMT by HMRC Admin 19

No, the whole of the pension income you receive is taxable.  

Tax relief is given to payments made into the pension scheme each year.

Thank you.

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