quilt365
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SIPP beneficiary overseas tax resident (New Zealand)
Hello HMRC, My father died last year aged 86 with a SIPP. The SIPP is now being distributed to his children and grandchildren. I know that there is income tax to be paid due to his age at death. I am one of the beneficiaries along with my two sons. We live in New Zealand and are NZ tax residents. None of us is a UK tax resident. I understand that there is DTA between NZ & UK. Is the tax automatically deducted at source by the pension provider before the lump sums are paid to us? And if so, what rate of tax will be deducted? Are we able to claim an exemption from paying tax to HMRC and pay it in NZ instead? If the tax is deducted at source, are we able to reclaim it from HMRC? The pension provider told us to contact HMRC. Thank you very much for your help.