Adrian Davies

Hi, I have made the cash withdrawal from my SIPP from which emergency tax was taken. The whole of the post tax amount I transferred to Malta. When completing the DT Individual Form Question 7 asks if I receive any special benefits which mean I pay either no tax or reduced tax on the income transfer. My questions are: 1/A certain amount of the transfer will be zero tax rated. I will indicate this amount on the form. Will this zero rated amount be covered by the Dual Taxation Treaty between Malta and the UK so no UK tax will be withheld and I receive a tax refund equal to the amount of tax taken on this amount. 2/The second question is whether the tax rate I pay is counted as a reduced rate of tax or not. I am on the Global Residency Programme in Malta which means I am taxed at a rate of 15% on ALL foreign sourced income, with a minimum tax payment of EUR 15,000p/a. For domestic sourced income the tax rate varies from zero for incomes below EUR 12,700p/a up to 35% for income over EUR60,000 p/a. All those on the Global Residency Programme pay 15% on foreign sourced income with a minimum payment of EUR 15,000 to be paid. Does the 15% tax rate on the remittance of my SIPP to Malta count as a special tax rate for Question 7 on the DT Individual. Many thanks for your help. Regards

Hi, Can you please confirm if lump sum withdrawals from a UK SIPP are covered by the Dual Taxation Treaty between the UK and Malta. I will be transferring all the withdrawal to my Maltese bank account and paying the appropriate tax due in Malta on the withdrawal - would this then be covered by the Dual Taxation treaty between the two countries so I could claim back any tax taken by HMRC on the withdrawal. Regards

Hi, thanks for the reply. One thing can you please confirm that lump sum withdrawals from my SIPP are covered by the Dual Taxation treaty between Malta and the UK? Regards

I have searched this forum for answers to these questions but have not been able to find any answers in enough detail hence my asking here so that your reply on this forum may be able to help others in a similar situation. I am 62 and a Maltese Tax resident and have no other tax residencies. I used to work in the UK and so my pension savings are all in a UK SIPP apart from my state pension which I can't draw until I am 67. I would like to withdraw all the money I have in my UK SIPP and remit it to my bank account in Malta. I would therefore be subject to the relevant Maltese tax for such payments. My understanding is that Lump Sum pension withdrawals are covered by the Double Taxation Treaty between Malta and the UK and so no UK tax should be due on this withdrawal. My SIPP provider has stated that they will deduct tax from the withdrawal and the level of tax deducted will depend on the tax code provided to them by HMRC. My questions are: 1/Am I correct in saying that lump sum withdrawals from my SIPP are covered by the UK Malta Double Taxation Treaty? 2/Is it possible to set up the paperwork in advance so that HMRC gives me a zero rated tax code so no tax is deducted by my SIPP provider when the money is withdrawn. If so what paperwork do I need to do so I have a zero rated tax code in advance of the withdrawal.. 3/If it is not possible to have a zero rated tax code set up in advance and tax is withheld from my withdrawal what are the steps I need to take to claim a tax refund? My understanding is - I need to fill in a Form DT-1 Individual. - I need to send page 1 of the form to the Maltese Tax Authorities for them to complete the form and add their official stamp, the form is then returned to me. - Once I receive it back I need to fill in the rest of the DT-1 Individual form and send it onto HMRC. If I do need to fill in the DT-1 Individual form does my SIPP withdrawal come under Part D, “UK INcome Tax taken off payments already received?” If not which section is relevant to my SIPP withdrawal on which UK tax has been taken.

Hi, I am happy for the reply to be posted on this community page as it will help others with these questions. I have seen similar questions answered on the community pages and am happy for my enquiry to be treated in the same manner.

I am 62 and a Maltese Tax resident and have no other tax residencies. I used to work in the UK and so my pension savings are all in a UK SIPP apart from my state pension which I can't draw until I am 67. I would like to withdraw all the money I have in my UK SIPP and remit it to my bank account in Malta. I would therefore be subject to the relevant Maltese tax for such payments. My understanding is that Lump Sum pension withdrawals are covered by the Double Taxation Treaty between Malta and the UK and so no UK tax should be due on this withdrawal. My SIPP provider has stated that they will deduct tax from the withdrawal and the level of tax deducted will depend on the tax code provided to them by HMRC. My questions are: 1/Am I correct in saying that lump sum withdrawals from my SIPP are covered by the UK Malta Double Taxation Treaty? 2/Is it possible to set up the paperwork in advance so that HMRC gives me a zero rated tax code so no tax is deducted by my SIPP provider when the money is withdrawn. If so what paperwork do I need to do so I have a zero rated tax code in advance of the withdrawal.. 3/If it is not possible to have a zero rated tax code set up in advance and tax is withheld from my withdrawal what are the steps I need to take to claim a tax refund? My understanding is - I need to fill in a Form DT-1 Individual. - I need to send page 1 of the form to the Maltese Tax Authorities for them to complete the form and add their official stamp, the form is then returned to me. - Once I receive it back I need to fill in the rest of the DT-1 Individual form and send it onto HMRC. If I do need to fill in the DT-1 Individual form does my SIPP withdrawal come under Part D, “UK INcome Tax taken off payments already received?” If not which section is relevant to my SIPP withdrawal on which UK tax has been taken. Many thanks for your help with this.

Hi, I am in a similar situation - I live in Malta and am a Maltese Tax resident. I would like to withdraw the funds in my SIPP in one lump sum and remit them to Malta. I just want to confirm that lump sum payments from mu UK SIPP to me in Malta are definitely covered by the Double Taxation Treaty between the UK and Malta and so I will not pay any UK tax on the lump sum withdrawal, I will just pay the relevant tax due in Malta. I understand that some tax may be taken initially in the UK but if it is then the tax will be refunded by either the company where my SIPP is held or by HMRC. I raise this because in another answer regarding someone who lives and is tax resident in Switzerland, it was stated that lump sums from a UK SIPP were subject to UK tax as lump sum withdrawals are not mentioned in the Swiss/UK double taxation treaty. Regards