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Posted Wed, 12 Apr 2023 06:16:57 GMT by Nellie
I am domiciled in UK but have an Australian superannuation fund. I hope to take the total amount as a lump sum, no regular pension payments, and deposit it into an Australian bank account. Do I have to declare that total amount if money to HMRC? Or, is only the interest earned from that money taxable in UK? If I transfer small amounts to UK bank account do I gave to declare them to HMRC?
Posted Wed, 19 Apr 2023 10:06:50 GMT by HMRC Admin 8
Article 17 for the UK/Australia double taxation agreement, relates to pensions, but it does not mention lump sum payments in any way.  
This means lump sum payments are not covered by the agreement:
As they are not covered by the agreement, it means the lump sum payment from the Australian Superannuation Fund, is taxable in both Australia and the UK.  
To avoid double taxation, you can claim a foreign tax credit relief in the foreign section of a self assessment tax return, for up to 100% of the tax paid in Australia, so that you do not pay tax twice on the lump sum. 
Thank you.

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