New Foreign Pension Rules - Catching Up
There you are, you've researched the rules for taxation of foreign pensions and are pretty happy you understand them. Then, lo and behold, some new legislation comes into force.
To recap, I'm a UK citizen, resident in the UK. I have a 401k in the USA and am nearly ready to start taking income from it. I've filed a W-8BEN form (or something) so that any partial withdrawals I take are only taxable in the UK. My plan is to use a variable withdrawal distribution as described on the Bogleheads forum - basically with the aim of emptying my 401k over about 20 years. I'd report the income to HMRC (the full 100%, not 90% because the rule's changed) on the foreign income SA page and pay any tax due. Bosh. Simples. Now, I've just read about some legislation introduced in Sept 2017 (I think) which "aims to treat foreign pensions more like UK pensions" or something like that. I daresay there's been a discussion about this already, but I've been out of the loop for various reasons. So, could some kind soul please summarise for me what the significant changes are? I'm especially interested if it's now possible to take 25% tax free from a 401k, as per UK pension rules - and how that works if I don't take the 25% in one go. I also have UK pensions to take as well in about 5 years, and they have their own tax free lump options. I'm not sure what the rules are with regard to multiple tax free lump sums from different pensions. |
Re: New Foreign Pension Rules - Catching Up
Tough issue you need to talk to a professional who is versed in tax implications for such pensions.
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Re: New Foreign Pension Rules - Catching Up
Originally Posted by Benson55
(Post 12507940)
Tough issue you need to talk to a professional who is versed in tax implications for such pensions.
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