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Posted Wed, 21 Aug 2024 21:21:43 GMT by AidanW
I have a UK Government occupational pension and I have been contributing to an AVC (pre-2014). I am resident in Portugal. According to INTM343040 the pension is taxable in the UK under the terms of the DTA but it's not clear how a lump sum payment taken from the AVC will be treated as although it is linked to the government pension it will presumably be paid out by the AVC provider (Pru). To muddy the waters the benefit can alternatively be used to purchase a "top up" government pension (although the latest factors make this a little expensive). Can you please clarify how benefits taken from this AVC are taxed wrt the DTA?
Posted Thu, 05 Sep 2024 08:21:34 GMT by HMRC Admin 25 Response
Hi AidanW,
This dpends on the amount received.
You will be due your personal allowance of 12570 and then taxed at either 20% or 40%
Thank you. 

 

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