jamsie

Hello, I’m look for some guidance for a hypothetical situation that might pop up in a few years’ time. Say I spent a long time working overseas, during which time I was never tax resident in the UK. My employers, a U.S.-based company, had a savings scheme for employees who worked in a third country, neither UK nor USA. It was a little like a 401(k). The employers would contribute to this savings plan, which, for the sake of argument, is located in the Cayman Islands. I was paid and taxed in the USA during this time though I was resident in third countries. When I leave my employers, the entire amount comes to me in a lump sum. In 2020, I returned to the UK (I’m a UK national). I was transferred to the UK payroll. All contributions to the savings plan in the Cayman Islands were stopped before I began working in the UK. Since becoming UK resident, I have paid into a regular UK pension plan, at Scottish Widows. My question is how this lump sum which might be sitting in the Cayman Islands savings plan would be taxed if I leave my employers and I am tax resident in the UK? I wasn’t tax resident in the UK at any time when I was paying into that savings plan. However the value of that savings plan, which is mostly in equities increased in value since the contributions stopped and I returned to the UK. And the entire amount comes to me as a lump sum if I am laid off or I resign or retire. Thank you!