Double tax on US pension incomr

Hi,

Please refer to further guidance here:

PTM063210 - Member benefits: lump sums: Pension commencement lump sum (PCLS): payments

It appears it only applies to UK pensions. You may therefore want to seek financial advice which HMRC cannot provide.

Thank you.

I would have thought asking HMRC what they view as a lump sum vs periodic would be the right way as in the end it will be HMRC who will make that distinction... So by way of example if I have a $350K pot and I take $87,500 in Year 1, $100,000 in Year 3, $90,000 in Year 6 and $72,500 in year 10... Would HMRC treat these as 4 Lump sum payments or periodic?

Hi
TSI 31/01/23HMRC does not have a legal definition of the term 'lump sum'.  
Our tax treaty team's definition is that a lump sum should be a payment that is not a periodic payment.  
A 'periodic payment' could be considered as a series of structured payments at regular intervals over a period of time, such as a monthly pension payments.  
While we are unable to comment on hypothetical questions, it would be fait to comment that such drawdowns would be treated as lump sum payments.
Thankyou.
Regards.

Can you reword the statement "it would be fait to comment that such drawdowns would be treated as lump sum payments" a fait accompli meaning they would be.. Can you clarify.. Thanks.. And it may not be hypothetical for my client

Hi Cheekyaadvark,

Sorry for the typing errors.  

It would be fair to comment that such drawdowns would be treated as lump sum payments.  

We are unable to comment on hypothetical or actual examples in this forum.  For a more difinitive answer, you would need to write to:

HMRC
BX9 1AS.

Thank you.

What is the turnaround for letters sent into HMRC

Hi,

You could contact the Self Assessment team, to confirm receipt of your double taxation form and progress chase its review.  

Self Assessment: general enquiries           

Thank you.