Offshore Pension Lump Sum

I am a British Seaman who worked for a company based in Dubai from 2012 to when the company went into liquidation in Feb 2021, The company had a retirement saving plan with Zurich international based in the Isle of Man. The company had stated to us that the plan was not a pension but a long term retirement savings plan, I closed the retirement plan and received a lump sum payment in March 2021, the company tax advisors told us to declare as income the Employers contribution and also any profit as well, I entered this figure onto my 2020-2021 self assessment but included it with my salary as I classed it as income. The other UK Employees told me they contacted HMRC and where informed by HMRC to declare the growth of the employers and employees contributions only and put this in to the part for Foreign Service Deductions. I am now at the stage, where HMRC have classed my pension lump sum payment (after the 25% tax free deduction) as taxable and not covered by my Seamans Earnings Deduction or Foreign Service Deduction. I am at a bit of loss on how to go forward, dozens of other UK employees who worked for the same company as me, who also took the lump sum have not been liable for tax, I have supplied HMRC with evidence of what the other UK employees submitted, but it seems to have not made any difference. Any advice would be greatly appreciated.

Update. I sent an enquiry to Zurich international and have received a letter from the Trustees of the retirement plan, they informed me that the funds were held in a discretionary trust in Jersey, it was funded by my company from employer and employee deductions from salary on an after tax basis, which was from non UK employers. They also said it was not a pension plan and no UK tax relief was received on contributions. Well, were do I go from here?

Hi,

You will now need to ask for your return to be amended by submitting an overpayment relief claim to have the figures changed. You can see guidance here:

SACM12150 - Overpayment relief: Form of claims

Thank you.