Tax Liability of Indian Employee Provident Fund

Hello Team, I am a UK tax resident at present. I have received a lumpsum withdrawal from my Indian Employee Provident Fund (EPF) accrued from salary sacrifice due to my being employed in India in the past. Below are the details of the the monies I received: - Withdrawal from Indian Employee Provident Fund (run by the Indian Government's Labour Ministry) - Contributions to the fund have been made from my salary (when I worked in India) and by my employers (matching contributions) - My EPF account was opened and received contributions before 2017 and continued till 2021 - EPF withdrawals are tax exempt in India I have worked out that I will need to declare the lumpsum in the UK self-assessment as foreign income. Please can you advise on the following? 1) I am required to declare the withdrawal as foreign income (presumably pension?) - Yes/No? 2) Is only the interest part of the amount taxable in the UK or (principal (i.e. contributions) + interest earned) - Yes/No? 3) Is the part of the lumpsum amount that was accrued before April 2017 exempt from UK tax? - Yes/No? 4) Is 25% of the part of the lumpsum amount that was accrued between April 2017 and 2021 exempt from UK tax (presumably EPF will be equivalent to UK registered pension schemes)? - Yes/No I will be obliged if you could advise on the above. Thanks & Regards

Hi,

Yes, this withdrawal needs to be declared, as under Article 20 of the double taxation treaty you are UK tax resident and so liable here. As some of the contribution is prior to 2017, please refer to the guidance below to ascertain the amounts to declare:

EIM75550 - The taxation of pension income: lump sums from foreign pension schemes

Thank you.