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Posted Thu, 08 Feb 2024 14:00:59 GMT by
Hi, I have an unapproved Jersey plan, set up during my time working in Dubai. It is called a pension but isn't and has no benefits or restrictions that pensions have, essentially it is an investment pot. Now I am back in the UK I need to know what tax, if any is due on this if I were to draw the funds out today. Can't work out if this is simply general income tax or exempt as I placed funds in from November 2017 to April 2018. If there is tax, do I get any TAR on it?
Posted Tue, 13 Feb 2024 14:21:38 GMT by HMRC Admin 5

Please refer to guidance at Tax on foreign income

Thank you
Posted Tue, 13 Feb 2024 14:36:33 GMT by
Thank you. I've read through this and can't see how to apply though. If I was a non resident in say 2015, and my employer put 100k into the unapproved Jersey trust, whilst living in Dubai, surely I only pay income tax on what the 100k has made during the years I was a resident? If this is not the case do I apply time apportionment relief for my years as a non resident and then apply UK income tax on that gain? Or, does TAR not exist for unapproved Jersey trusts and is only for offshore bonds? Surely if I put in 100k and it's now worth say 140k, and I brough it into the UK, I don't pay income tax on the 140k, but only the gains? I was a non resident when I put the money in, a non resident for the whole time it was invested and now, just this tax year become a resident again (I was born and bred here). I don't see how to apply the foreign income rules to this investment.
Posted Fri, 16 Feb 2024 11:41:28 GMT by HMRC Admin 5
Hi MrMe

Please refer to additional guidance at EIM75550 - The taxation of pension income: lump sums from foreign pension schemes

Thank you
Posted Tue, 12 Mar 2024 11:15:35 GMT by Mr Me
Hi I am really struggling with this. The plan is not a pension, it has no benefits that would make it a pension under the view of HMRC. No one seems to know if it would be taxed like an offshore bond or if it is taxed as a generally investment account and under CGT rules. Is there a department in HMRC that I can speak to, to clarify?
Posted Tue, 19 Mar 2024 12:18:00 GMT by HMRC Admin 8
You would need to contact our self assesment helpline on 0300 200 3310 or contact our webchat facility at:
Contact HMRC
Thank you.

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