SunnyUK

Hi, I did try to make sense of that article before posting my query, and I am afraid I still don't understand it now that I have re-read it. As I read it, Article 18 says (in relation to my specific situation) 1) Pensions (or similar) paid to me, being resident in the UK, is subject to tax ONLY in the UK 2) In my case, where I was resident in Denmark and have become resident in the UK, nothing in this Article shall affect Denmark's right to tax me on pensions (or similar) 3) talks about social security legislation so not sure if it is relevant for a workplace (private) pension. But if para 3 is relevant, it says notwithstanding para 1, payments received by me being resident in the UK under social security legislation in Denmark, shall be taxable only in Denmark 4) defines what "annuity" means Article 19, para 2 is also referenced in Article 18 para 1. Article 19 para 2 says (translated to my case) 2) (a) Any pension paid by our out of funds created by Denmark shall only be taxable in Denmark 2) (b) however, such pension shall be taxable only in the UK if the I am resident and national of UK [which I am] So Article 18 seems to say 1) only taxable in the UK 2) but also in Denmark 3) but only in Denmark and Article 19, if it applies, says 1) only taxable in Denmark 2) however, only taxable in the UK I'm utterly confused....

I was born in Denmark as a Danish citizen, and whilst working there paid in to a workplace pension scheme known in Denmark as "kapitalpension". Payments to this scheme was income tax deductible. The scheme matures after I turn 60 years and pays out as a lump sum. The Danish tax authorities will withhold 40% of this lump sum. I have been resident in the UK since 1999 and have paid tax in the UK since 1999. The contributions to my Danish "kapitalpension" stopped in 1998. I am a naturalised UK citizen. I'm hoping that double taxation rules means that when this pension matures, I won't have to pay UK tax on it in addition to the 40% withheld by the Danish tax authorities. But is that correct? And how should I declare it on my self assessment?

Thank you so much HMRC Admin 25 Final question - and apologies for coming back piecemeal like this 3) The SIPP provider I'm considering is Vanguard whom I understand normally arranges "relief at source". Do I separately need to inform HMRC via a self assessment? Thank you again for your kind assistance.

Thank you very much HMRC Admin 25. Two follow-up questions if I may please. 1) My actual earnings this tax year, before any deduction of income tax, is £45k. So when you mention £54k, does that refer to me contributing £45k from my inheritance to the SIPP, and the SIPP provider getting 20% from HMRC ("relief at source")? Or can I actually contribute £54k and still get relief? 2) I am 55 years old at the moment. I intend to start withdrawing from my pension at 60. Am I right in thinking that since the money I will be putting into the SIPP is from an inheritance, I don't need to worry about pension lump sump recycling rules?

Just to add to this - the income quoted is gross taxable income.

I have inherited money from my mother, and would like to put the money into a SIPP and claim tax relief. For tax year 2023-24, my employer has contributed £37k to my workplace pension. I have not contributed anything. So there is £23k un-used out of the £60k allowance. My income for the year is £45k. For tax year 2022-23, my employer contributed £31k, I contributed nothing. So there is £9k un-used out of the £40k allowance for that year. My income for the year was £45k. For tax year 2021-22, my employer contributed £27k. I contributed nothing. So there is £13k un-used. My income for the year was £45k. For tax year 2020-21, my employer contributed £12k. I contributed nothing. So there is £28k un-used. My income for the year was £60k. I am aware I can max claim relief up to 100% of my income. But it is not clear to me whether that is 100% of my income in the year I make the contribution (i.e., THIS tax year), or whether it is 100% of my income in each year that is covered by my contribution. In other words, if I contribute the full amount of 23k + 9k + 13k + 28k = 73k, can I claim tax relief on the full 73k? Or can I max claim relief on the 45k I am earning in the current tax year?