Nigel Giles

My partner worked in Australia for 9 years from 1992 to 2001 and was a contributor to a State Authority Superannuation Scheme (SASS). Resigned in the 2001 and returned to the UK. This year aged 60 is now entitled to withdraw a lump sum (Tax free in Australia) but taxable in the UK as a UK residnet. From what I can ascertain from the UK Government website, HMRC and various other online sources, it would seem there is a possibility of foreign service relief on the portion of the lump sum that has grown over the years, prior to April 6th 2017. It is the calculations I am having problems with in particular the definition of “reckonable service” Query: Was in employment (foreign service) from 1992 to 2001 (not resident in the UK) contributing to SASS. Does this mean the following: The reckonable service was from 1992 – 2017 (length of time a member of the Superannuation Scheme) The reckonable foreign service was from 1992 – 2001 (length of time employed and contributing to the Superannuation Scheme)

Pension Tax for Overseas Pensions - Chapter 2 states: the following "Currently only 90% of a foreign pension or annuity payable to a UK resident (except those claiming the remittance basis) is chargeable to UK tax". It also states "From 6 April 2017 lump sums paid by non-UK pension schemes to UK residents will be taxable regardless of the type of pension scheme paying the lump sum. However the taxing provision and the taxable amount will depend on the nature of the scheme making the lump sum payment. Registered pension schemes- If the non-UK scheme is registered, any lump sum will be taxable in the same ways as lump sums paid from a UK based registered pension scheme. The taxation of lump sums paid from registered pension schemes remains unchanged" Please can you clarify whether this means 1. 90% of the lump sum is taxable, 2. 25% of that 90% is tax free.

Hi, It's Nigel Giles again. I would need to get a definitive answer to a basic question as this has major implications in my life here in the UK, as I do not wish to fall foul of any rules and be liable for a large tax bill. From a number of responses on this forum there seems to be conflicting or ambiguous information regarding how HMRC will deal with a LUMP SUM payment from an Australian Superannuation Scheme for a UK resident. It seems to come down to the definition of a LUMP SUM. This needs to be clarified in plain English please. In basic terms I am now entitled (age 60 - retired) to withdraw the whole of my Superannuation benefit from the State Authorities Superannuation Scheme (SASS) and place the sum into my personal Australian Bank Account and it is TAX FREE as far as the Australian Tax Office (ATO) is concerned - that has been confirmed by the ATO. Previous responses from HMRC Admin 32 has implied that this IS taxed in Australia and NOT liable to tax in the UK. However, this conflicts with the response from the ATO and also there have been responses on this forum that have implied it is taxed in the UK and also that it is not taxed in the UK . Please Please can you confirm / clarify whether I will be liable to pay TAX here in the UK if I should have this LUMP SUM transferred out of SASS to my personal bank account in Australia. I have been told there needs to be a clear understanding of the term lump sum as that is key. Please can you respond as soon as possible, as I am trying make this big decision in my life without falling foul of HMRC.

HMRC Admin 32 - Further to my previous reply, I notice the following of reading Article 18 - "Salaries, wages and other similar remuneration, other than a pension or annuity, paid by a Contracting State or a political subdivision or local authority of that State to an individual in respect of services rendered in the discharge of governmental functions, shall be taxable only in that State" It clearly states "other than pension...." How is this relevant to my question, as I am asking specifically about a pension. Do you mean Article 17? If not, please can you further explain how Article 18 relates to my query. Many Thanks 

HMRC Admin 32 - Many thanks for the clarification. Looks like I need to contact the ATO to ascertain the total amount tax payable on the lump sum, to see which is the preferred option for us in bringing these funds to the UK. Best Regards Nigel Giles

I have read my HMRC Admin responses on this subject and require a straightforward waffle free answer to the following. I worked in Australia for the Health service from 1992 to 2002 and paid into a superannuation scheme called the State Authorities Superannuation Scheme (SASS). When I left and returned to the UK in 2001 (now a UK resident), I became a "deferred member" and the superannuation fund continued to accumulate. Now I have reached retirement age (60) and no longer in the work force, so I am entitled to a lump sum payment from this scheme. Please correct me if I am wrong anywhere in the next few paragraphs. If this lump sum benefit is "rolled over" into another regulated Superannuation Scheme in Australia, which allows monthly withdrawals (the current SASS Fund does not), at the point of "roll-over" I am still not liable to declare or pay any tax to the UK GOV. However, if I then withdraw a monthly "pension / income stream equivalent of GBP£4000.00" (call it what you like), I will be liable to declare and / or pay UK tax here in the UK, at the point of withdrawal, not necessarily when transferred to the UK. Also, I assume this income will be treated the same way any normal income stream to a UK resident and I would be entitled to receive the first £12570.00 tax free, then pay 20% on the remainder. I also understand that I would receive a foreign tax credit for tax paid in Australia. I look forward to some clarity and straightforward responses from a HMRC Admin. Best Regards.

I worked in Australia for the Health service from 1992 to 2002 and paid into a superannuation scheme called the State Superannuation Scheme (SASS). When I left and returned to the UK in 2001, I became a deferred member, now I have reached retirement age (60) and I am entitled to a lump sum payment from this scheme. This can be paid into an Australian bank account (which i still have) or be rolled over into another superannuation scheme, which allows me to withdraw payments in a staged manner. (i.e. paid out as a pension). Please can you advise at what point with either of the options, am I liable (if at all) to declare and / or pay UK tax here in the UK and what the tax rate is likely to be? Also, will I be taxed on the full amount or only part?