View Single Post
  #7  
Old 22.05.2016, 16:11
fatmanfilms's Avatar
fatmanfilms fatmanfilms is offline
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 21,378
Groaned at 461 Times in 352 Posts
Thanked 23,091 Times in 11,824 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: Transfer of Pension to UK SIPP for non-resident

Quote:
View Post
How did you manage to open a UK SIPP while not resident there? I was blanked by everyone on the grounds of not being a resident.

Also, I didn't understand the reference to tax payable. Why would you want to cash in an entire UK pension fund? Above the 25% tax-free portion, it's classed as income, so it will be taxed if it's above the income tax threshold in any given year. TBH, that seems reasonable to me. SIPP contributions get tax relief so this is supposed to balance out the tax paid on withdrawals.

Unfortunately, contributions while resident outside the UK are capped at 2,880 (and 0 after 5 years). I mean, contributions that will get the government top-up. You can still pay in what you want but there is no tax relief, so there's not much point.
It was an existing personal pension that I transferred to a SIPP. No additional contributions whilst non resident have been raised made.
It's with Hargreaves Lansdown.

The fund has been growing at a compound rate of 17.6%, the quicker it's cashed in the better as in just over 4 years it will more than double the tax liability
Reply With Quote