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Old 22.04.2020, 19:57
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UK pension (SIPP) tax

I have a UK SIPP. Over the years Iíve transferred all UK employer pensions to it every time Iíve changed job. Iím late 40s, so itís a while before I can access it. Iím a Swiss resident and plan on staying here after retirement. My questions are re UK taxes.

The gov.uk website says: ďIf youíre not a UK resident, you donít usually pay UK tax on your pension.Ē Since there is a double taxation treaty with Switzerland I assume that I could reclaim UK taxes and pay here instead. Has anyone had any issues with this?

Also, as itís a long way off, itís not beyond the bounds of possibility that my SIPP pension pot could appreciate beyond the lifetime allowance. Do I pay 55% on a lump sum withdrawal in the UK and then reclaim?
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Old 22.04.2020, 21:00
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Re: UK pension (SIPP) tax

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I have a UK SIPP. Over the years Iíve transferred all UK employer pensions to it every time Iíve changed job. Iím late 40s, so itís a while before I can access it. Iím a Swiss resident and plan on staying here after retirement. My questions are re UK taxes.

The gov.uk website says: ďIf youíre not a UK resident, you donít usually pay UK tax on your pension.Ē Since there is a double taxation treaty with Switzerland I assume that I could reclaim UK taxes and pay here instead. Has anyone had any issues with this?

Also, as itís a long way off, itís not beyond the bounds of possibility that my SIPP pension pot could appreciate beyond the lifetime allowance. Do I pay 55% on a lump sum withdrawal in the UK and then reclaim?
You get a NT tax code from HMRC then no tax is paid on the distribution, fill in the DTA form
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Old 24.07.2020, 12:11
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Re: UK pension (SIPP) tax

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You get a NT tax code from HMRC then no tax is paid on the distribution, fill in the DTA form
Is that definitely what happens? I get worried when I read the following: https://www.gov.uk/tax-uk-income-liv...ad/taxed-twice

ďIf the tax rates in the 2 countries are different, youíll pay the higher rate of tax.ď
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Old 24.07.2020, 12:57
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Re: UK pension (SIPP) tax

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Is that definitely what happens? I get worried when I read the following: https://www.gov.uk/tax-uk-income-liv...ad/taxed-twice

ďIf the tax rates in the 2 countries are different, youíll pay the higher rate of tax.ď
You get an NT tax code by filling in a DTA form stamped by Switzerland, then the full tax liability goes to Switzerland.

UK has a personal allowance so you are likely to get a reasonable deal if tax deducted in the UK, however Switzerland can choose to add tax depending on the DTA rules & Swiss handling of foreign pensions, which probably varies from Canton to Canton.
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Old Yesterday, 14:14
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Re: UK pension (SIPP) tax

Unfortunately, I think the Lifetime Allowance still applies, ie tax penalties to total pension funds over £1.055m.

These penalties canít be reclaimed, afaik.

I donít know whether the Lifetime allowance is calculated only on UK funds.
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Old Yesterday, 15:04
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Re: UK pension (SIPP) tax

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Unfortunately, I think the Lifetime Allowance still applies, ie tax penalties to total pension funds over £1.055m.

These penalties canít be reclaimed, afaik.

I donít know whether the Lifetime allowance is calculated only on UK funds.
Only on UK funds are part of the cap & likely if you fund was that size it would be subject to a higher cap.
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