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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!