Simon Marks

Thanks very much.

Thanks so much. One final question, if I may....do those bands (20% 40% and 45%) kick-in AFTER 25% is tax-free AND - if applicable - the deduction of the personal allowance? In other words if my income in the UK is zero, do I receive: 25% of the total lump sum tax free Then GBP 12,570 tax free Then the 20 / 40 / 45% bands? Or is the initial 25% tax free lump sum considered income and counts towards the 12,570 personal allowance? Thanks again for all the help.

Thanks for this. So if a lump sum is taken, what tax rate applies on the 75% of value if it's paid to a non-resident with an NT tax code?

I'm considering cashing-in a personal pension plan that I have in the UK...established decades ago. I have been a non-resident, living in the US for more than 25 years. I pay tax on my income in the US, and am trying to establish whether it is possible to seek relief from taxation at source via form DT US Individual 2002 (https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/850465/Form_US-individual_2002.pdf) Am I correct that once this form is signed and sealed by both HMRC in the UK and the IRS in the United States, it can then be provided to the private pension company and act, effectively, as an instruction to them not to use the emergency tax rate that would otherwise be applied to 75% of my pension payout? I know the first 25% is paid out tax-free, but am trying to avoid use of the emergency tax rate which will then require me to claw the money back from HMRC, when I will be paying tax on it in the US to the IRS as part of my worldwide income. I'm unclear as to whether Form DT US Individual 2002 can be completed BEFORE the pension payout has begun? Thanks for any assistance and advice.