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Posted Thu, 11 Apr 2024 13:48:42 GMT by Lost_in_EU
I have been living in Germany last 12 years, I was on secondment from my company and they had me placed in an offshore pension scheme. The pension has been wholly funded by net salary as there is no tax deductable allowance for pension contributions in Germany for foreign schemes. If i return to the UK and access the pension will i get allowance for it being a net contributed pension where tax has been paid on all contributions or will UK just view it all as straight income or will they tax just the capital growth. IOM scheme have said they would pay it to me without tax regardless of my domicile.
Posted Fri, 19 Apr 2024 14:05:36 GMT by HMRC Admin 25
Hi Lost_in_EU,
HMRC cannot comment on future events as legislation and/or plans may change.
Thank you. 
Posted Sun, 21 Apr 2024 15:21:15 GMT by Lost_in_EU
I can do it now but I don’t know how it would be treated. It’s not hypothetical and indeed I’m asking how will it be treated now if I do it as I am in the process of returning to UK and want to use the lump sum to purchase a house.
Posted Mon, 29 Apr 2024 11:49:04 GMT by HMRC Admin 32

If you qualify for split year then you only report any foreign income for the UK part of the year.

RDRM12000 - Residence: The SRT: Split year treatment

If you do not qualify then you will need to report all your foreign income to the UK.

Tax on foreign income

The guidance at RDRM12150 at GOV.UK will help you work out if split year treatment applies.  

If to be reported here, the payment is income and taxable.

Thank you.

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