Singapore CPF

Singapore’s Central Provident Fund (CPF) is a government administered personal pension for citizens and permanent residents. CPF monies can be used for approved investments and the monies accessible upon retirement. The Singapore government has announced the closure of the program for ex-permanent residents and monies will have to be transferred out of the scheme by 2027 at the latest. See notice: https://www.cpf.gov.sg/member/infohub/news/news-releases/closure-of-cpf-accounts-for-non-singapore-citizens-and-non-permanent-residents CPF contributions are made up of an employer contribution and an employee contribution. I arrived in UK in 2004 and was Singapore tax resident up until that point, and UK tax resident thereafter. When my CPF account is closed and monies transferred to the UK, will there be any tax implications? Will the total amount be taxable at my current tax rate? Will it be subject to capital gains, if any? What if my intentions is to transfer the entire amount in my UK pension?

Hi
Any contributions made up to 5th April 2017 will not be taxable upon receipt of the lump sum.
The rights up to that point are exempt.
Employee contributions from 6th April 2017 will not be taxable upon receipt of the lump sum.                                                              
When the CPF is paid out as a lump sum to a UK resident, Income Tax is charged on both the employer’s contributions and any growth in value of the scheme investments (from 6th April 2017).
No tax-free lump sum would apply as it does not qualify as a relevant non-UK scheme (RNUKS).

What is the significance of the date 5th April 2017. Why are contributions prior to this date tax exempt and contributions after and growth taxable? Contributions ceased at the end of 2005 and most of the contributions were invested in CPF approved investments (I.e. funds). Is the growth the difference between the valuation of the investments as at 5th April 2017 and when I withdraw the funds, or the full capital gain since contributions were invested up until 5th April 2017?

Hi,

Please refer to guidance at:

EIM75550 - The taxation of pension income: lump sums from foreign pension schemes

Thank you.

In my case, I have moved to UK before 5th Apr 2017, so there was no more employer and employee contributions since 2012. Take the the below number as example, I just want to make it simple to illustrate: Since 2012, I had yearly interests earned from CPF £1500, yearly payments from CPF account into CPF approved medical insurances (MediSave) company for premiums was £500. I withdrew full CPF funds into my Singapore banking account in Mar 2023. Year In-flow out-flow net-growth 2017 1500 500 1000 2018 1500 500 1000 2019 1500 500 1000 2020 1500 500 1000 2021 1500 500 1000 2022 1500 500 1000 For filing my tax return 2022-2-23, I have below questions: Q1: Is my illustration correct, the growth is the difference between the in-flow and out-flow each year? So the total taxable incomes for my full CPF withdrawal is 6 x 1000 = £6000? Those are the information I can get from CPF yearly statements. I know the actual number would be slightly different, because the tax year was from 6 Apr to 5 Apr, so I should take the number from 06 Apr 2017 to 31 Dec 2017 ad number from 01 Jan 2023 to 05 Apr 2023. Q2: I am filing the tax return by myself online, so I would like to know under which entry I should put this £6000 growth number as income.

Hi chen,
We cannot comment on scenarios, only provide general information / guidance in this forum.  
For an answer to a detailed question of this nature, you would need to contact our self assesment helpline on 0300 200 3310, or seek professional advice.
Thank you.