Foreign Income/Pension

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?

Hi

Please refer to guidance at Tax on foreign income

Thank you

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.

Hi MrMe

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

Thank you

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?

Hi,
You would need to contact our self assesment helpline on 0300 200 3310 or contact our webchat facility at:
Contact HMRC
Thank you.