International Savings Plan. Report interest or withdrawals?

Hi, I have an ‘International Saving Plan’ earning interest and would like to clarify the tax situation for self assessment now that I have returned to UK residency. The plan was established by my Singapore employer as a Corporate Savings Plan with employer and employee contributions made from January 2017 until July 2019 whilst I was employed and resident in Singapore. I paid the Singapore income tax on both employer and employee contributions. In late April 2022 upon retirement and UK tax resident I transferred the Corporate Savings Plan to an individual International Savings Plan (with the same Guernsey based provider). I then made 2 partial withdrawals in Q1 2023. I checked with the Saving Plan provider on the tax position and they have advised me to contact HMRC regarding this and what to file for self assessment. Please comment on whether I need to declare the interest received as foreign savings interest, or whether withdrawals are classed as income and subject to UK tax? The plan provider has stated that they do not report the interest received via CRS but that they do report via CRS the 2 withdrawals paid to my UK bank account. Thanks in advance,

Hi,

The withdrawals would be seen as pension income and as UK resdient you would be liable on your worldwide income, subject to an double taxation agreements and therefore would need to show the details on your return.

Thank you.

Hi, thanks for your reply, As no tax has been deducted on my withdrawals by the Guernsey based savings plan provider I understand that double taxation relief is not applicable? Or, Alternatively, is it allowable to go back a step and calculate / claim double taxation relief on the Singapore tax paid by myself on both the employer and employee contributions used to build up the savings with the plan provider? If the above is not applicable, and I am now to record this in self assessment as foreign pension income (tailoring the return at section 3) and after studying other similar posts can you please confirm: - I do not need to also declare the occurring annual interest payment under foreign savings income? - The 2 Withdrawals made Q1 2023 can be classed as lump sums (the savings plan does allow withdrawals or closure at any age / time)? - Any contributions made up to 5th April 2017 will not be taxable upon receipt of the withdrawals. Are the rights up to that point exempt? - ‘Employee’ proportion of contributions from 6th April 2017 will not be taxable upon receipt of the withdrawal? - Hence, that I shall self-assess / record / declare only the proportion of the withdrawals relating to the employer contributions post 5th April 2017, plus the total accrued interest growth in the savings plan since 5th April 2017 as the taxable amount? Or, whether I need to declare the full amount of each withdrawal? Thanks in advance,