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Posted Sun, 20 Feb 2022 13:24:06 GMT by Belgian expat
Hello, I am a Belgian citizen and resident, who has worked in the UK for several years between 1998 and 2013, and permanently left the UK in 2013. I have a SIPP pension plan in the UK, and as I am over 55 and semi-retired in Belgium, I would like to drawdown (part of) my SIPP. Based on the current Double Taxation Agreement between the UK and Belgium, the following is my understanding, but please advise on the correctness of my statements: 1) A SIPP withdrawal/payout (in 2022) by a Belgian national & resident will be taxed in the UK (and not in Belgium) 2) The SIPP withdrawal can include the first 25% tax-free part of the total pension amount, and will be treated as tax free in the UK even for a non-resident 3) Any further SIPP withdrawals in the same UK tax year will be taxed at the regular UK tax rates 4) The (UK-non-resident) Belgian national/resident will be able to receive/apply the UK personal allowances when filing UK taxes, as he is a EU citizen 5) I assume it is not necessary to request an NT code from HMRC as UK tax filing is required, and the SIPP provider will apply the regular UK tax deductions? 5) In Belgium, that pension income is exempt from national income tax (under the DTA), but will have to be reported and will be taken into account to calculate the ultimate tax rate if the Belgian national/resident has other income in Belgium, and to calculate local government tax ("gemeentetaks"). Many thanks for your assistance and advice!
Posted Mon, 21 Feb 2022 14:52:32 GMT by HMRC Admin 17

According to the tax treaty :

Belgium: tax treaties  ,

If the pension from the UK was paid after January 2013 then this would be subject to UK tax only.

UK rules allow for 25% tax free each year with any remainder being taxable under UK rules. 

As a national and resident of Belgium, you will be entitled to the UK personal allowance.

You cannot apply for an NT code as this income remains taxable in the UK.

You will need to speak to the Belgian authorites to see if this needs to be included as part of your overall income. 

Thank you.

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