Pension NT code - amount limits or time limits

Hi I will be applying for an NT code in relation to my UK pension. I have been tax resident in a zero tax country for almost 10 years. When an individual has received an NT code in relation to a pension, assuming their residence circumstances doesn’t change: - is there any limit on the size of a single pension drawdown that can be drawn down tax free based on the NT code? Eg could I do a single drawdown for more than GBP1M with the NT code being applied? - secondly, how long is the NT code valid for future pension drawdowns? Eg one year, two years, any limit? (Assuming no change in tax residence status) (Based on the tax treaty my pension would not be taxable in the UK)

Hi Pines12345,
As long as there is a tax treaty confirming that the pension is not taxable in the UK, NT code can be applied.
If the tax treaty covers lump sums and full relief is available, there is no limit.
Tax code NT would remain in place until it is no longer appropriate.
Applications for NT code and tax free lump sums must be made using a DT individual form, which can be found here:
Double Taxation: Treaty Relief (Form DT-Individual
Thank you. 

 

I see from the answer above that once a person receives the NT code, there is no limit to the amount of pension that can be withdrawn in one go. (Of course assuming the basis of receiving the NT remains valid). When I obtained my NT code and HMRC asked what my expected annual income from this pension would be, I disclosed an amount I planned at the time to withdraw annually. I can see this amount stated on the HMRC portal in relation to this pension’s annual income. However, I now intend to withdraw the total pension this tax year in a couple of drawdowns amounting to several million pounds (significantly greater than the initially disclosed annual income). Will this cause any problems? Should I be notifying HMRC of this new significantly higher value? Basically what is the relevance of this annual income disclosed on the portal for my pension?

Hi Clarky55,
With each new drawdown you will need to submit a DT Individual form.
You can find if there is a tailored DT individual for your country of residence. By navigating to www.gov.uk, please type "DT individual UK / (enter your country of residence)".  
You will need to download the form and complete it after you have drawndown your pension. You send the completed form to your local tax office in your country of residence for validation. They will either return the validated form to you for onward transmission to HMRC or they will send it directly to HMRC. This depends on your country of residence.
Each time you commence a new drawdown, you will need to repeat this process, in order to claim back any tax deducted from the drawdown.
Thank you.

My question must not have been clear as the response does not address my question. I already have the NT code. Against this pension income source on my HMRC portal, I can see an annual income. I told the tax technician this amount when I was expediting my NT code. Instead of taking income over time, I now plan to do a single large lump sum drawdown of the full pension. This number is of course much larger than the annual income equivalent. What is the purpose of this pension annual amount that is visible on the HMRC portal? Ie if I now take the single lump sum, does this portal amount block the transaction? Or is the amount there just so tax payers can see a theoretical annual tax?

Hi Clarky55,
We are unable to review personal matters in this forum.
For an answer to a personal question of this nature, you would need to contact our Self Assesment helpline here:
Self Assessment: general enquiries
Thank you.