Non-uk resident flexible pension lump sum refund

I am a non-Uk tax resident living in Cyprus. I have NRL and each year I complete a SA return as I have a small UK rental income which is less than the personal allowance. This tax year I have taken the full value of my UK pension as a lump sum and UK tax has been deducted from the payment by the provider. Cyprus has a DTA with the UK and I understand the payment is taxable in Cyprus under article 17. Should I use R43 to reclaim the tax ? I would prefer not to wait to complete my SA for a refund as it is many months away. Thank you.

Hi,
 

Please note that you can claim a refund of the tax deducted from your UK pension by completing form DT-Individual.                                  See Link:  Double Taxation Treaty Relief  . Thank you .

Once I complete and return DT-Individual to HMRC what happens? Who refunds the UK tax deducted from my lump sum pension?

Hi,

On receipt of form DT Individual, any refund due will be issued by HMRC by cheque to your home address or if you have nominated someone in the UK to receive this, to your nominee’s address.

Thank you.

I am a British citizen tax resident in Italy. I received a lump sum from my UK pension provider in December 2022 which I was informed had been taxed at source in the UK. Following advice from this forum, I submitted DT-Individual to HMRC, with a Certificate of Tax Residency from the Italian Authorities, requesting a refund of the tax so that I could submit the full amount for local taxation in Italy. My provider was, for some reason, reluctant to inform me of the tax paid, but I assumed that HMRC would have the details. HMRC recently replied with a refund of tax that had been paid on my monthly pension, but saying that: 'We don't hold details of your lump sum payment so are unable to exempt this source of income or review for any potential repayment. Please provide a P60 or document confirming pay & tax' I already had a P60 from my pension provider on which there was no mention of my lump sum or any tax paid on it, so I contacted them requesting further information. I have to-date - after over a month - not received any response from them and so have solicited them again about it, hoping for a reply. I was very surprised by HMRC's reply that they don't hold details of lump some payments - and tax that they have collected from them. Is there any way that this information can be found or derived...? I need the to know the full amount (Lump Sum + Tax deducted) to submit to the local Italian Tax Authorities. Any assistance or advice would be greatly appreciated.

Hi,

When you commence receipt of a UK private pension, the pension provider should add you to their payroll and in turn notify HMRC that you commenced your pension with them. By the time we receive the validated double taxation individual form, your pension details should be on your tax record.  

The pension provider deducts tax and sends it to HMRC, along with tax for other peoples pensions. This information will only be available from your pension provider, until they submit it to HMRC.

Thank you.

I submitted a dt individual form and received a reply that l should reclaim the tax from my self assessment. But l dont want to wait so long and would rather have them send me a cheque to a uk friends address or bank transfer …How can l request this please

Hi,

You can contact our Self Assessment team to request this.

Self Assessment: general enquiries

Thank you.

Please can HMRC admin help. I am also on an international SIPP pension and non resident in the UK. I got a refund by cheque but banks here wont let me lodge it in my account. I cannot nominate anyone in the UK and have no UK bank. I have phoned the helpline they cannot help this is my pension and nearly 50% is on this cheque. Please help.

Hi Colin C,
HMRC only issue repayments to UK bank accounts or a payable order, only cashable in UK banks.  The only other option is to nominate a trusted person to receive the payment on your behalf.
Thank you.