This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

Cashing in Pension

Yiannis17
Posts: 82
Joined: Wed Aug 06, 2008 3:43 pm

Cashing in Pension

Postby Yiannis17 » Thu May 21, 2020 9:38 am

Morning

I have a person who cashed in his pension early, aged 55 years of age. The amount is a considerable amount. The person is no longer UK resident nor UK domiciled and left the UK many years ago to live in Europe.

The pensions after having the 25% tax free lump sum and taxed accordingly were paid directly into his European bank account. They did not touch the UK.

HMRC has now asked him to prepare a tax return. I have received opposing opinions on how this should be taxed. Some saying it should be declared in his home country.

If someone could please shed some light on this. Thank you

AGoodman
Posts: 1088
Joined: Fri May 16, 2014 3:47 pm

Re: Cashing in Pension

Postby AGoodman » Thu May 21, 2020 10:05 am

I'm no expert here but can I assume this is a UK pension (i.e. it would be UK source income)? Also, the specific country may be relevant as it's likely to be covered by a double tax treaty.


Return to “Savings & Investments, Pensions & Retirement”

cron