UK Private Pension in Oz
 

I am 65 and retiring shortly and a permanent resident in Oz. My UK company pension will be paying me about 6k pound per year, in monthly payments, into my Oz bank, plus state pension of about 500pound per month into same. My UK company pension have advised me they have passed my info onto HMFC who will send me a P161 form-do I, or will I pay UK tax on both company/state pensions?:frown:

Re: UK Private Pension in Oz
 

No, not if you have a permanent resident visa. They will both be taxed here.

Re: UK Private Pension in Oz
 

Once you've retired abroad, even if you're classed as being 'non-resident' for tax in the UK, you'll still pay tax on most pensions you receive from the UK. However if you're living in a country that the UK has a ‘double taxation agreement’ with, [eg: Australia] you may be able to get these pensions without Income Tax being deducted. You may also be able to claim a refund of any tax which has already been deducted.

Making a claim under a double taxation agreement
http://www.hmrc.gov.uk/international/dta-claim.htm
and look for:
Form Australia-Individual 2003 - United Kingdom/Australia Double Taxation Convention (SI 2003 Number 3199)


http://www.hmrc.gov.uk/pensioners/paying-abroad.htm

Re: UK Private Pension in Oz
 

Totally agree with ABCD.

Your private pension will be taxed at 20% by IR until you submit a form (see ABCD reply) proving you live in Oz and then they will remit the full amount to Oz.
Takes about 2 months from the time you submit the form until you receive the money without tax being deducted.

Still waiting for the tax already paid to be refunded (applied end Feb 2014).

And yes you will have to declare it to ATO and pay tax on it.

Re: UK Private Pension in Oz
 

Hi, Lesleys;ABCD & kiwipaul-many thanks for all your replies!

Re: UK Private Pension in Oz
 

Hi, Sorry to be a nuisance! the ATO advise me that I need to complete a Supplementary tax form for 2014. Apparently, I can claim UPPs (Undeducted Purchase Price) from my State Pension-As anybody else had this UPP to deal with? My query is that I, apparently, cannot deduct UPPs from my BG Private Pension. I have spoken to the ATO and they don't seem to have the answer either!

Re: UK Private Pension in Oz
 

This may help on UPP

https://www.ato.gov.au/Super/APRA-re...itish_pensions

Re: UK Private Pension in Oz
 

Hi Spottydog, Thanks for the link-as I now understand it's only the State Pension I can deduct UPP-not the BG pension. Oh Well!

Re: UK Private Pension in Oz
 

Well done on getting as far as you did with the ATO - I'm Australian but don't mind saying it has THE most convoluted website I've ever had the misfortune to encounter. Whoever develops their info and documents could do with some training in plain English!

Re: UK Private Pension in Oz
 

Hi Spouse of Scouse, I don't know whether to laugh or cry when dealing with the ATO-From my experience dealing with the ATO-anybody you speak to on the phone wants to help but, nobody seems to know what I'm supposed to do to complete my tax return! It's just so b...frustrating. If I make a mistake, the ATO will be the first to point it out no doubt. If anybody out there who knows someone who works at the ATO can they please tell them the system needs a shakeup as people like me, simple soul that I am, are going crazy trying to do the right thing.

Re: UK Private Pension in Oz
 

Hi goslar1961,
Just a couple of points you might not be aware of.
State/government pensions in the UK - police, teachers, councils etc are NOT included in double taxation agreements and states so on HMRC website. These therefore cannot be paid gross in OZ, or any other double taxation agreement country.
I also think that UK state pensions paid to OZ residents no longer qualify for the annual increase -believe the OZ government withdrew from the bi lateral agreement a few years ago. ( hope i'm wrong on this!)
If your State pension is above the UK tax free allowance - as mine is due to SERPS and a couple of other old UK government schemes - then you still have to pay UK tax on it. The catch is, that by law the UK government is not allowed to take tax off State Pensions so will take it off any private pensions you have.

If the foregoing is teaching you to suck eggs , then I apologise in advance!:o

Re: UK Private Pension in Oz
 

Just reread OP post. If your State pension is only £500 per month then you are below the UK tax free allowance and it will be paid as is, since you will elect to be taxed on your total income in OZ.
Teach me to read a bit more carefully before putting pen to paper!

Regretfully my State pension is double this so I cannot avoid paying some UK tax.both my wife's pensions are UK government pensions so all her income is taxed in the UK.(They take tax due from her Teachers pension each month)

Re: UK Private Pension in Oz
 

Hi Quiltman, Thanks for your comments-As per previous replies-I am going to send a 'double taxation" form to HMRC in UK so they will not take any tax in the UK. I'll never understand in a million years why you have to complete a tax return in Oz-haven't they got enough public servants to do the job? I don't mind doing tax returns it's just the lack of direct information which frustrates me. Even if you go to a tax adviser to help you-they usually have no idea what to do when it comes to UK pensions etc.

Re: UK Private Pension in Oz
 

Lots of good advice here - You can also look at the possibility of transferring the entire Company Pension to OZ before you take it as a pension too. This then allows you to access 100% of your funds rather than ongoing payments through an annuity.

Then there are tax savings considerations in OZ - However if you over 65 years of age then there are issues with Contributions caps to be taken into account as well.

Remember that current proposed changes to pension rules from April 2015 will allow you to access your funds 100% from age 55 years onwards.

I hope that helps cheers john

Re: UK Private Pension in Oz
 

Hi John in Oz, Thanks for the info. I've already started to receive monthly payments from my private (BG) Pension-so I think that possibility is now dead!