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Posted Sat, 24 Feb 2024 21:33:15 GMT by Joe Clark
Hello, I am a UK citizen living in the UK who through working in Australia in 2015 has a superannuation fund. If I withdraw all of the monetary value as a lump sum from my superannuation fund is this considered a pension withdraw in the UK and as such will this reduce my yearly tax free pension contribution allowance from £60,000 to £4,000? If so does this change in my tax free threshold only apply when I transfer the lump sum value to a UK bank account? Therefore would it not apply if I left the lump sum amount in an Australian bank account? Regards 

Name removed admin 
Posted Tue, 27 Feb 2024 12:08:13 GMT by HMRC Admin 21
Hi Joe Clark,
As UK tax resident and domicile you are liable on your worldwide income whether you transfer it to the UK or not. It would be considered a pension withdrawal. see guidance at Check if you’ve gone above the money purchase annual allowance.
Thank you.
Posted Tue, 27 Feb 2024 15:47:58 GMT by Joe Clark
Thanks for your reply. The link though points to the page which is covers going above the money purchase annual allowance via payments into a pension. My query is to do with withdrawing monies from my Superannuation policy not contributions paid in. Are you able to reply re whether this full lump withdrawal from my Superannuation would trigger changing my annual allowance from £60000 to £4000. Thanks Joe
Posted Wed, 28 Feb 2024 11:51:40 GMT by HMRC Admin 10
Hi
We can only provide general information / guidance in this forum.  For an answer to a question of this nature, will require  more personal informatin than can be declared in this forum, you would need to contact our self assesment helpline on 0300 200 3310, contact our webchat facility at Contact HMRC or seek professional advice.
Posted Tue, 12 Mar 2024 20:30:26 GMT by Joe Clark
Thanks, I spoke with an HMRC Tax SME and they confirmed that any withdrawal of funds from a superannuation fund would be classified as a pension withdrawal in the UK for a Brit citizen living in the uk, and therefore would reduce my pension contribution tax free allowance in subsequent years from £60k to £3.6k.

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