Pension at 55 - Removing Full Pot
#1
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Joined: Aug 2017
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Pension at 55 - Removing Full Pot
Hello All,
Forgive me if this has been covered but I have been reading so much about this and not really getting the full picture and my head is spinning!
My question is really fairly simplistic.
I have a fund that has been doing nothing for years and it makes sense to draw it out when I turn 55 next month.
As a UK citizen who is green card resident in the UK, what level of taxation is applied by the Inland Revenue in the UK. If it helps, the fund is no more than about 31K GBP. I realise their are other implications, but as a starting point, I would like to establish the UK taxation status.
Thank you for reading.
Forgive me if this has been covered but I have been reading so much about this and not really getting the full picture and my head is spinning!
My question is really fairly simplistic.
I have a fund that has been doing nothing for years and it makes sense to draw it out when I turn 55 next month.
As a UK citizen who is green card resident in the UK, what level of taxation is applied by the Inland Revenue in the UK. If it helps, the fund is no more than about 31K GBP. I realise their are other implications, but as a starting point, I would like to establish the UK taxation status.
Thank you for reading.
#2
Re: Pension at 55 - Removing Full Pot
Which country do you live in? (Is that a typo I quoted?)
Unless it is a government pension (resulting from employment by the government, not a state pension), a pension is taxed only by the country where you are living.
Unless it is a government pension (resulting from employment by the government, not a state pension), a pension is taxed only by the country where you are living.
Last edited by Pulaski; Aug 28th 2017 at 6:36 pm.
#3
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Re: Pension at 55 - Removing Full Pot
The fund is Defined contribution (money purchase).
Hope this helps and thank you.
#4
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Re: Pension at 55 - Removing Full Pot
If you withdraw it all as a lump sum it will only be taxed in the UK. Have you remembered to report it on your FBAR & 8938 every year?
#5
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Joined: Mar 2017
Posts: 64
Re: Pension at 55 - Removing Full Pot
If you withdraw it all as a lump sum it will only be taxed in the UK.
It said that a lump sum payment would be taxed in the US?
#7
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Re: Pension at 55 - Removing Full Pot
If I am honest, I think the last contribution in was in 1996 and I did not even realise the plan was around until by chance I got forwarded some mail a few weeks back.
Now I am extremely worried.
#10
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Re: Pension at 55 - Removing Full Pot
Thanks Guys!!!
#11
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Re: Pension at 55 - Removing Full Pot
I think this is correct however I think his situation is that he is a UK citizen living in the USA on a Green Card and has a UK pension that he wants to cash in.
#12
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Joined: Mar 2015
Posts: 40
Re: Pension at 55 - Removing Full Pot
Based on the information you have provided. You are a U.K. resident taxpayer who is resident in the U.K. for tax purposes but have a green card.
You do not become a resident alien in the U.S. until the first day you reside in the U.S. so as a U.K. resident taxpayer you can claim the PCLS and take the full pension pot after the 25% tax free cash at your marginal rate of income tax in the U.K.
You do not become a resident alien in the U.S. until the first day you reside in the U.S. so as a U.K. resident taxpayer you can claim the PCLS and take the full pension pot after the 25% tax free cash at your marginal rate of income tax in the U.K.
#13
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Re: Pension at 55 - Removing Full Pot
Based on the information you have provided. You are a U.K. resident taxpayer who is resident in the U.K. for tax purposes but have a green card.
You do not become a resident alien in the U.S. until the first day you reside in the U.S. so as a U.K. resident taxpayer you can claim the PCLS and take the full pension pot after the 25% tax free cash at your marginal rate of income tax in the U.K.
You do not become a resident alien in the U.S. until the first day you reside in the U.S. so as a U.K. resident taxpayer you can claim the PCLS and take the full pension pot after the 25% tax free cash at your marginal rate of income tax in the U.K.