Pines12345

I have two SIPP pensions. I have already received an NT code for my first pension (as I am living overseas and have started drawdowns). If I move my second pension into the first pension, will the NT code apply to the new funds as well? The current wait times for NT applications with the HMRC ismore than 6 months, so merging in other pensions to one that has gone through the process could be much faster. Thank you.

Hi I will be applying for an NT code in relation to my UK pension. I have been tax resident in a zero tax country for almost 10 years. When an individual has received an NT code in relation to a pension, assuming their residence circumstances doesn’t change: - is there any limit on the size of a single pension drawdown that can be drawn down tax free based on the NT code? Eg could I do a single drawdown for more than GBP1M with the NT code being applied? - secondly, how long is the NT code valid for future pension drawdowns? Eg one year, two years, any limit? (Assuming no change in tax residence status) (Based on the tax treaty my pension would not be taxable in the UK)

Thank you for the response and the link. The MPAA provisions were put in place to prevent pension recycling ie situations where pension drawdowns are recycled back into a pension obtaining further tax relief. Therefore, to reiterate my question: For non-”relevant UK individuals”, who by definition cannot obtain tax relief in the UK, do contributions in excess of GBP10,000 still attract a tax charge after drawdown? (Note the calculator you referred me to does not take into account if the individual is obtaining tax relief for the pension savings or not - hence did not answer my question).

Hi, Therefore, can you confirm: if an individual is not a ‘relevant UK individual’ and more than GBP10k contributions are paid into their UK pension in a tax year (after a drawdown) that the excess over GBP10k will not be chargeable to tax? regards

Thanks for your response. Your response in effect states that the MPAA limit of GBP10,000 pa would apply, even though I am non-resident and not claiming tax relief, and any contributions in excess of that amount would be chargeable to tax. However, I have been monitoring similar questions on the Forum and came across an answer provided to Clarky55 by HMRC Admin 19 which provides a different answer on basically the same question. The thread is titled “Relevance of annual allowance and MPAA to non-residents contributing in to UK pension schemes”. HMRC Admin 19 states that: “Money Purchase Annual Allowance (MPAA) would not apply, as the contributions are not eligible for relief.” Could you confirm which of the replies is correct, and if possible the relevant law/guidance on this. Thanks

I left the UK over 10 years ago and do not intend to move back. I have been contributing to a UK company pension scheme during all this time and I also have a UK SIPP. I have not been getting UK tax relief on these contributions as I have not had any UK earnings. I intend to draw down my UK SIPP fully in May 2024 in one lump sum (I will not be subject to UK tax on this due to the relevant tax treaty in force). After I have fully drawn down my UK SIPP, I would like to continue to contribute at the same level as before to my employer’s UK company pension scheme. I am aware of the MPAA GBP10,000 that is triggered by a pension drawdown. Does this apply in situations where no tax relief is being obtained? Eg my contributions together with my employer were GBP15,000, I would like to continue at this level. Will the GBP5,000 over the ‘MPAA’ GBP10,000 be subject to the annual allowance charge even though I am not UK tax resident and not claiming tax relief in the UK?

Thank you for you response. Just to clarify. I have read that certain enhancement factors only apply to the life time charge mechanism but do not increase the PCLS itself. Could you confirm that the enhanced pension LTA, international, under Section 221 Finance Act 2004 does increase the PCLS? regards

The UK pension regime’s Lifetime Allowance provisions have been changed recently. Nonetheless, is one still able to request to HMRC under Section 221 Finance Act 2004 for an enhanced Lifetime Allowance factor (in relation to periods when non UK resident)? Thank you

I have an enhanced pension LTA, international (having been non UK resident), under Section 221 Finance Act 2004. I plan to do a full lump pension drawdown (this would be my first pension benefit crystallization). When the pension company applies the emergency tax code, should they take into account the enhancement - ie enabling a larger 25% tax free lump sum. (I would of course share with the pension company the certificates in advance of drawdown). regards

I live in the UAE (having left the UK more than 10 years ago) and will be drawing down a lump sum from my pension in 2024, whilst still living in UAE and remaining a non-UK tax resident. From my research, I understand that under the UK-UAE double tax treaty this pension drawdown will not be taxable in the UK. Is my understanding correct that hence I will be entitled to a full tax refund under the current treaty?