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Posted Wed, 24 Jan 2024 15:45:52 GMT by John Millard
I am living abroad (Switzerland) and have been since 2000. I have no income in the UK, and have had non since the year 2000. I would like to take lump sum payments from a pension scheme that I paid into prior to the year 2000 while I worked in the UK. I understand that if I do so then this will be subject to a tax rate set by an emergency tax code. Is there a way of registering with the UK HMRC to get a tax code so that my withdrawals will be taxed correctly and I can avoid making repayment claims on the first and each subsequent planned "annual" withdrawal?
Posted Mon, 29 Jan 2024 08:35:54 GMT by HMRC Admin 19 Response
Hi,

No, the pension has to be in payment before a code can be issued and payments are notified only when the pension has been taken so tax is already deducted,

Thank you.
Posted Mon, 19 Feb 2024 18:58:59 GMT by John Millard
Thank you for the answer. That is helpful and gives me some more clarity. I have a follow-up question. I am permanently living overseas, and have been since 2000. I have no plans to return to the UK. When I take lump sum payments from the pension plan that I have in the UK, will this be subject to taxation according to the tax bands and tax-free allowances as if I were a UK resident, or will another taxation scheme apply? I understand from the answer to my previous post that an emergency tax code will be applied, but that I will then be able to claim once a correct tax code has been issued. If there is a different scheme for non-residents (i.e. living abroad with no income in the UK), is there documentation that explains what the taxation levels will be. Many thanks for your help in understanding this.
Posted Wed, 21 Feb 2024 10:20:45 GMT by HMRC Admin 25
Hi John Millard,
The pension will be taxed at source and you can then reclaim the tax back.
HMRC cannot issue a tax code to make it exempt prior to it being in payment:
Tax on your UK income if you live abroad
Thank you. 

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