HMRC Admin 17 Response
Joined: 1/20/2021
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RE: UK Tax on Australian Superannuation
Hi,
If you are unsure whether your payments are classed as lump sums or not and the guidance provided here does not clarify then you would need to send in the paperwork to ourselves so we could review this further.
The term lump sum is not legally defined and so we can only interpret the meaning and following discussions with the Tax Treaty Team, we have adapted our understanding:
A lump sum should be a payment that is not a periodic payment.
This may not empty the pot, and a taxpayer may have more than one lump sum payment.
Example – If a taxpayer receives monthly pension payments and then takes out a larger payment as a one off from the same pension pot, whilst continuing with regular monthly pension payments, then this one-off larger payment can be considered a lump sum as it is not a regular periodic payment.
However, if a taxpayer has a pension fund which only requires an annual distribution of a certain percentage (eg 4% payment annually)to be made, then even though this is only once a year, it should be considered a pension as it is their periodic pension.
If the payment is a periodic payment, then this would only be taxable in the UK. The 25% rule applies to UK pensions.
Thank you. -
Mortgage interest - tax relief?
Hi,
This will be taken as a basic rate tax deduction from your tax liability for the property.
You calculation will work out the tax based on your net profit.
If there is any tax due it will then use 20% of the amount in the finance costs box and reduce the tax liability by this amount.
There will be separate line towards the end of the calculation to show this.
Thank you. -
Mortgage interest - tax relief?
Hi,
Thank you for your question.
You should put the ineterest paid on your mortgage under "Residentail finace costs".
Thank you.
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RE: UK Tax on Australian Superannuation
Hi
Tony Simpson,
We are unable to provide financial planning advice or give advice on hypothetical situations.
However, as a UK tax resident you would be expected to report your worldwide income to the UK, including pensions
unless there is a specific clause in the tax treaty to state otherwise.
Australian pensions are generably taxable in the UK.
See Link:
UK/ AUSTRALIA DOUBLE TAXATION CONVENTION .
This is not dependant on whether the money is brought to the UK.
Thank you. -
RE: Money transfer
Hi,
Please see guidances here :
Check if you need to pay tax when you sell cryptoassets
and :
Capital Gains Manual
to see if you need to pay tax on this .
Thank you. -
RE: Money transfer
Hi,
If this is classed as a redundancy payment then the first £30K would be tax free in the UK.
Guidance on taxable lump sum payments from employers can be found here.
If this is not a redundancy payment then it may be taxable in the UK.
See link:
Employment Income Manual .
Thank you. -
RE: Certificate of Residence for tax purposes
Hi,
The current timescale is 2 weeks for online requests, if you received the email confirmation of receipt and it's been longer than 2 weeks
I would contact our taxes department. See link:
Income Tax: general enquiries .
Thank you.
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RE: Money transfer
Hi,
Employment income is taxable in the period in which it is paid so if this is paid when you are UK tax resident, then it will be taxable in the UK.
You can however also let us know of any tax paid by your oveseas employer and we will give credit for this so that you are not charged twice
on the same income.
Thank you. -
RE: Money transfer
Hi,
Bursaries, grants and scholarships are generally not taxable in the UK.
These would therefore not need to be reported.
The transfer of the funds would not need to be reported, however if any interest was
generated from tha bank account where the funds were held, these would need to be declared.
thank you. -
RE: Transfer of Swiss Pension
Hi,
To find out about tax implications on the tranfer of funds, you would need to speak to our pension schemes service team :
Pension schemes .
If you are withdrawing the lump sum as a UK resident, and not transferring to an existing pension then this would be taxable in
Switzerland based on the conditions in Art 18.2.
We cannot comment on the tax implications in 4 years time.
Thank you.