Pension Lump Sum and Claiming Tax Refunds for Non-Residents

I am tax resident in the UAE (and have been for many years) and will be drawing down my full UK pension as a lump sum. I know tax will be withheld and I will need to claim a tax refund (6 digits) under the UAE-UK Tax Treaty. Can you clarify the following: 1) Can I request the tax refund through the DT Form Individual or will I be required to complete a self-assessment (I have no other UK income)? 2) As the amount of the tax refund is rather large I expect there will be additional scrutiny before it is refunded. Could you please clarify what is likely to be required from me in terms of documentation/evidence? 3) Approx how many months would a refund typically take for a large amount once the form is submitted?

Hi Clarky55,
It depends on the actual amount of income received.
If the gross payment is over £100,000 you will need to complete a tax return and enclose HS304 with the return.
If under, you can use the DT individual claim form.
Thank you. 

Does anyone have experience of Greece / UK double tax relief? I have been tax resident in Greece since 1 January 2022. I have been trying to claim a UK tax refund on my UK source pension income. HMRC demands that the Greek tax authority sign and stamp my DT Individual form. The Greek tax authority declines to do this and provided a digital certificate of my Greek tax residency which HMRC refuses to accept in place of my signed and stamped DT Individual form. Impasse and I am piggy in the middle. Has anyone had similar experiences or can suggest a solution? Many thanks !!

I have recently taken a lump sum from my private pension pot. When doing so I paid emergency tax as I am a non-UK resident. I live in France. If I understand correctly there is a double taxation agreement between France and the UK and I am obliged to pay tax on the sum in France and reclaim the emergency tax from the UK. I believe that there is a form that I need to fill in and submit to the French tax office before sending to the British tax authorities. Does anyone have any experience in a situation. Thank you.

Hi Steven Maris

You can make a claim using - Double Taxation: UK-France (SI 2009 Number 226) (Form France-Individual)

Thank you

Hello l just withdrew my private pension and have been charged emergency tax. As l am a non uk resident landlord..how can l claim the tax back. I am living in the U.A.E. If l need to claim it via self assessment which form do l need to use as we cannot just file our returns online which would make it alot easier especially since we are overseas. I really dont know what the hmrc just dont make an online portal for the non resident landlords to submit their returns. Why make life so difficult..and even more diffult now that the sa100 is no longer downloadable..why should we have to pay for 3rd party software every year,

Hi,

You can see guidance here:

Tax on your UK income if you live abroad

Thank you.

I'm tax resident in France and about to exercise the Uncrystallised Funds Pension Lump Sum (UFPLS) option on half a dozen separate UK pension plans to take the full amount of each plan as a lump sum. I will have to pay UK emergency tax on 75% of the value of each plan. The total amount I will receive after tax will exceed £100,000, so do I therefore need to file both the HS304 and the Form France Individual DT? Thanks.

Hi David Hudson

If filing the French DT form, the certification by the French authorities confirms that the income is declared there and you dont need to include the HS304.


Thank you
 

Hi, As I am tax resident in France, I reclaimed UK income tax deducted from a private pension fund (not in drawdown) that I had transferred to France. However, the amount I was able to transfer excluded AVCs that I had paid into the fund. Sometime after, I received a letter from the agents of the pension company to say that, following legal advice, the pension provider would pay me the AVCs as a lump sum. I received the amount less UK income tax deducted. I applied to reclaim the income tax using the DT form. However, the tax repaid by HMRC is less than the amount of tax deducted at source because a UK personal allowance has been applied. Is this correct? Many thanks.

Hi AndyB65,
You will need to download and print of the form at the link below.
It should include all your new pensions and send the completed form to the French tax authorities. They will validate the form and return it to you.
You then send it to HMRC at the address on page 1 of the form.  This will allow HMRC to refund all of the tax deducted.
Double Taxation: UK-France (SI 2009 Number 226) (Form France-Individual)
Thank you.

I am a UK citizen who left UK 23 years ago, thus no longer a UK tax resident. Currently I am a tax resident of Japan As I am now approaching 60, I understand I am allowed to have my UK private personal pension, acquired during my time in UK, paid out as a lump sum. I understand that UK pension rules are that 25% of the lump sum will be tax free and the remaining 75% will be taxed at the emergency tax rate. I am told by the pension company that they will withhold and pay tax to HMRC at emergency tax rate on the 75% of lump sum. As I am a Japan tax resident, can I claim back all the tax withheld by HMRC ?, - What is the process to reclaim the tax withheld? Help and advice will be gratefully received.

Hi,
You can see guidance here:
Tax on your UK income if you live abroad
Thank you.

I am currently living in Malaysia and am not registered for tax as I am not liable to tax in Malaysia. I have been living outside the UK for many, many years, having lived in several different countries. A long time ago I declared myself non-rseident and non-domiciled for tax purposes with HMRC. I do not receive any earned income in the UK and have not done so for many years - well over 10 years. However I have recently signed up for my state pension and have received a small amount of state pension in the current tax year. I recently took a lump sum payment from my main private pension in the UK from which they were obliged to deduct UK tax at the emergency rate. How do I go about recovering the tax that they deducted?

Hi, I’ve been living in Australia for almost 30 years and have two private pensions in the UK I want to cash out. They total about £55,000. What tax will I pay when I take out the lump sum and will I be able to claim any of it back? If I can claim some back which forms will I need to submit? I’ve been told 25% is tax free, then I pay 20% tax on the remainder minus the tax free threshold of £12,570? Can I claim some of the 20% tax back if this is correct?

Hi Richard Hayden,
You can see guidance here:
Tax on your UK income if you live abroad
Thank you.

Hi HappyHammer,
You can see guidance here:
Tax on foreign income
Thank you.