ClareU

Thanks so much Ken - that is very helpful and the exact advice I was after! I agree I should run all this by a professional, I just wanted to try and understand the process and I am not wanting to get out of paying any tax, but did want to make sure that I didn't lose out on claiming anything back. Many thanks again for your help.

Thanks so much Ken - that is very helpful and the exact advice I was after! I agree I should run all this by a professional, I just wanted to try and understand the process and I am not wanting to get out of paying any tax, but did want to make sure that I didn't lose out on claiming anything back. Many thanks again for your help.

The first 25% is free from UK tax. The remaining 75% is taxed at the higher rate of tax. The pension company have confirmed this.

HI, I am hoping someone can please give me some guidance and answer a few questions regarding taking a lump sum in the UK and declaring the tax in the UK and AU. I am a duel British/Australian citizen living in Australia since 2002. Having turned 60 I have a UK PP in the amount of 18,000 GBP to access. The money is only available as a lump sum or as an annuity so I want to take the full amount. I know that the first 25% of the value of the fund is tax free so I should receive 4,500 before being taxed. I am told that the remaining 75% will be taxed at 40% so that would leave me with an additional 8,100 GBP. I am assuming I declare this amount but converted in AU $ on my tax return, so around $22,000. My first question is: can I deduct from this, the amount that was in the fund before I became resident in Australia? My next questions are: Once I receive the funds, do I apply to HMRC for a tax rebate on the basis that I should have been taxed on a lower income threshold? And also, if I then receive a rebate do I also declare that on my Australian tax return? Finally, can I offset all the tax I end up paying in the UK? I have not earned an income either here or in the UK for the last couple of years. Hope this is laid out clearly enough to make sense, I am finding it pretty confusing! Many thanks for any assistance you can provide!