Anita Jagroop-Dearing

Hi MMRC Admin 10, sorry but the additional guidance is very complicated. Instead of referring me to a list of complex rules, many of which don't seem related to my original question, can you please just answer my original question? Currently it sounds like you also can't work out if I'm taxed in the scenario I am in. If that is true can you please find someone at HMRC who can answer the question?

Dear Admin 25. I'm sorry but the reply to my post is very short and not useful. Can you please tell me if the 10 year rule in PTM112010 does or does not apply to the 25% lump sum that would be tax free in the UK.?The current wording is "can" apply and it does not say what it specifically applies to. You are currently saying "yes you might be taxed but we won't tell you until after you withdraw the lump sum". That is not an appropriate reply for a government service.

PTM112010 states 'Certain tax charges known as the member payment charges can apply for 10 full tax years following the tax year in which the member left the UK". It doesn't say it will apply only it can apply, but doesn't list when it will apply. If I left my USS pension in the UK I could take a 25% lump sum tax-free. However, I completed the transfer to a NZ QROPS over 5 years ago and have been a NZ (and only NZ) tax resident for 7 years and am turning 55. The purpose of the QROPS rules was to make the conditions the same as UK pension. Therefore I believe I can take a 25% lump sum tax-free . Do you agree?

I am confused about QROPS and PTM112010. It states 'Certain tax charges known as the member payment charges can apply for 10 full tax years following the tax year in which the member left the UK". Nothing I read can tell me if this applies to lump sum payments taken from age 55? If I left my USS pension in the UK I could take a 25% lump sum tax-free. However, although I completed the transfer to a NZ QROPS over 5 years ago and have been a NZ (and only NZ) tax resident for 7 years it seems I have less access to my pension because of this 10 year rule. The purpose of the QROPS rules was to make the conditions similar to the UK pension, but this makes it considerably different and prevents a tax-free lump sum. Why are 25% lump sum payments taxed in QROPS but are tax-free in the UK?