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Bermudan pension lump sum

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Joined: Wed Aug 06, 2008 4:04 pm

Bermudan pension lump sum

Postby hardy » Mon Jun 19, 2017 3:47 pm

Is a lump sum from a Bermudan pension fully taxable in the 2016/17 tax year?
We have always claimed the 10% deduction on the monthly pension, but the client cash in the pension and received just over $240000.
Does the 10% deduction apply to this as well, or is it fully taxable?

Posts: 178
Joined: Wed Feb 08, 2017 2:33 pm

Re: Bermudan pension lump sum

Postby AnthonyR » Wed Jun 28, 2017 1:00 pm

It depends... on a lot of things...

If the pension scheme was a QROPS and the client is resident in the UK then it's likely that 25-30% will be tax free (from 6 April 2017 it'll be 25%, assuming the scheme is qualifying) the remainder will be taxed as income (with no 10% deduction if post 6 April 2017).

If it's not you'll need someone who understands overseas pensions to review the scheme to determine what it is and whether it's going to be taxable in full or part.
Anthony Rogers CTA
Fusion Partners LLP

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