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Old 06.11.2015, 16:58
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Cashing in Allianz "Vested Benefits Policy". UK tax situation.

Hi EFers,

Excuse me if this has already been discussed, but I have searched and searched and have as yet found no clear answer either here or elsewhere.

I worked for a Swiss company from 1986 to about 1999 and paid into a pension with Elvia who since became part of Allianz.

I have lived in the UK since 2000 and am now 60.

The funds are sitting in a "Vested Benefits Policy" which pays out on my death or at maturity in 2020.

Being 60, Allianz would let me cash in the policy now less a Swiss tax of 6 - 8%.

If I cash in and transfer the money back to the UK, is it liable for UK tax?

http://www.hmrc.gov.uk/manuals/dtmanual/DT18167.htm seems to say no, but my accountant seems to say "it depends on the policy details" without being able to specify exactly which details might matter.

Can anyone point me at a clear statement of the rules (or a recommended UK based advisor)?

Thanks
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Old 16.12.2015, 22:24
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Re: Cashing in Allianz "Vested Benefits Policy". UK tax situation.

Anyone?
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Old 16.12.2015, 23:23
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Re: Cashing in Allianz "Vested Benefits Policy". UK tax situation.

There is no further tax for you to pay if you take the money as a lump sum.

Extra Statutory Concession A10, this applies to any pension built up before 2011, its slightly more complicated after that.

http://www.hmrc.gov.uk/manuals/eimanual/EIM15082.htm
http://www.hmrc.gov.uk/manuals/eimanual/EIM15083.htm

Here is the info for the proportion built up after 2011, which in many cases will still be tax free. This was to stop tax avoidance by UK residents.
http://www.hmrc.gov.uk/manuals/eimanual/EIM15084.htm


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Hi EFers,

Excuse me if this has already been discussed, but I have searched and searched and have as yet found no clear answer either here or elsewhere.

I worked for a Swiss company from 1986 to about 1999 and paid into a pension with Elvia who since became part of Allianz.

I have lived in the UK since 2000 and am now 60.

The funds are sitting in a "Vested Benefits Policy" which pays out on my death or at maturity in 2020.

Being 60, Allianz would let me cash in the policy now less a Swiss tax of 6 - 8%.

If I cash in and transfer the money back to the UK, is it liable for UK tax?

http://www.hmrc.gov.uk/manuals/dtmanual/DT18167.htm seems to say no, but my accountant seems to say "it depends on the policy details" without being able to specify exactly which details might matter.

Can anyone point me at a clear statement of the rules (or a recommended UK based advisor)?

Thanks

Last edited by fatmanfilms; 16.12.2015 at 23:39. Reason: Adding post 2011 info
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