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Posted Wed, 12 Jun 2024 13:37:18 GMT by Adrian Davies
I have searched this forum for answers to these questions but have not been able to find any answers in enough detail hence my asking here so that your reply on this forum may be able to help others in a similar situation. I am 62 and a Maltese Tax resident and have no other tax residencies. I used to work in the UK and so my pension savings are all in a UK SIPP apart from my state pension which I can't draw until I am 67. I would like to withdraw all the money I have in my UK SIPP and remit it to my bank account in Malta. I would therefore be subject to the relevant Maltese tax for such payments. My understanding is that Lump Sum pension withdrawals are covered by the Double Taxation Treaty between Malta and the UK and so no UK tax should be due on this withdrawal. My SIPP provider has stated that they will deduct tax from the withdrawal and the level of tax deducted will depend on the tax code provided to them by HMRC. My questions are: 1/Am I correct in saying that lump sum withdrawals from my SIPP are covered by the UK Malta Double Taxation Treaty? 2/Is it possible to set up the paperwork in advance so that HMRC gives me a zero rated tax code so no tax is deducted by my SIPP provider when the money is withdrawn. If so what paperwork do I need to do so I have a zero rated tax code in advance of the withdrawal.. 3/If it is not possible to have a zero rated tax code set up in advance and tax is withheld from my withdrawal what are the steps I need to take to claim a tax refund? My understanding is - I need to fill in a Form DT-1 Individual. - I need to send page 1 of the form to the Maltese Tax Authorities for them to complete the form and add their official stamp, the form is then returned to me. - Once I receive it back I need to fill in the rest of the DT-1 Individual form and send it onto HMRC. If I do need to fill in the DT-1 Individual form does my SIPP withdrawal come under Part D, “UK INcome Tax taken off payments already received?” If not which section is relevant to my SIPP withdrawal on which UK tax has been taken.
Posted Fri, 14 Jun 2024 08:59:37 GMT by HMRC Admin 21
Hi Adrian D,
HMRC  cannot issue a tax code prior to an income source being in payment and the SIPP company will therefore operate an emergancy tax code on your withdrawal. The tax can then be reclaimed by submitting the DT Individual form - this must be certifies by the Maltese government at section 1.  The pension details should be declared at section C2. If you intend to take a monthly pension payment we can then issue the NT code so that no further tax is taken.
Thank you.
Posted Fri, 14 Jun 2024 10:23:46 GMT by Adrian Davies
Hi, thanks for the reply. One thing can you please confirm that lump sum withdrawals from my SIPP are covered by the Dual Taxation treaty between Malta and the UK? Regards
Posted Tue, 18 Jun 2024 10:55:38 GMT by HMRC Admin 19

It is covered under the 'other income' article.

Thank you.

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