vulcan

As a US citizen and resident for UK tax purposes the Inland revenue say without a tax code I will be taxed at 40% by the private pension fund manager. I asked as a non UK tax payer is there any form or certificate I can give the fund manager to exempt payment from tax, perhaps in a similar way to interest payments. The short answer was no, claim it back. The only way I could get a tax free payment is to withdraw up to 25% my fund value.

How are y'all dealing with this problem. I can't be the 1st and only receiver of a private UK pension as a non UK tax payer

durham_lad

You need to file form 2002 to get your U.K. Tax code set to NT0 and stop having tax withheld from your U.K. pension.

I went through the same issues when I started to draw a U.K. pension back in 2007.

https://www.gov.uk/government/public...ndividual-2002

nun

I will assume you are a US citizen and resident in the US.....your post is a little confusing as to where you are tax resident.
You have been given an answer that is wrong mostly by omission and that obviously totally ignores your US citizenship as HMRC is not
concerned about that.

What you do is file an US-Individual-2002 and an 8802 residency form with the IRS in Philadelphia. They will forward it to HMRC. Claim the appropriate DTA tax exemption and you should receive the pension without any tax being withheld. If tax is withheld you would file an R43 to claim the tax back.

vulcan

Thank you both for your replies.


I did think "As a US citizen and resident for UK tax purposes" made my status clear enough but if you were confused I apologies

durham_lad

Yes, that was clear enough

I guess my situation is that I had my zero tax PAYE code on my UK pension before I returned to the U.K. to become tax resident earlier this year in May, and one of the first things I did was to register for self assessment as I also have US pensions that will be subjected to U.K. tax for the year 16/17.

I am due to start a 2nd UK pension in February and am now wondering now how that will treated regarding tax withholding.

nun

Well it depends on how you read it. It could be "US citizen and resident" or "US citizen.........and resident for UK tax purposes"

vulcan

" a US citizen and resident for UK tax purposes " ..........it's obviously ambiguous and I can see how you were confused.


Thank you

kevntrace

Glad that you can now see how it was totally ambiguous for some of us.

vulcan

Thank you for your contribution

vulcan

Late Dec 2016 I mailed my 2002 and an 8802 forms, check cashed early January. Whats' the next step? Who should I expect to here from, the UK tax office, my pension fund manager?

My fund manager, one of the larger ones, isn't what I would consider prompt when it comes to communications.

lansbury

If I am remembering correctly I heard from HMRC. You will notice that the tax has stopped being deducted before that in all probability. It took several months.

durham_lad

I don't recall hearing from HMRC but after 2 months on my monthly pension the tax code went to NT (no tax) and I had 2 months worth of tax refunded in my pension cheque.

vulcan

Thank you both for your reply's.

iceflow

Here was my experience last year
Feb 16 - Sent 8802 & 2002 forms to US Treasury in Philly
Apr 16 - Letter from US treasury saying they had approved and sent details on to HMRC
Apr 16 - Letter from HMRC with cheque attached for refund
May 16 - Letter from HMRC stating new tax code = NT

As it all seemed to go into a black hole after Feb 16 I took to calling HMRC on
the international number which I don't have to hand. I have 0300 200 3300 on the cheque letter. First two calls in early / mid April....'nothing showing in the system' was the response. Called early May.....'refund cheque issued and tax code adjusted'.
Hope this helps. It can be hit and miss as to who you get in HMRC and how clued in they are to the 8802 process.

vulcan

Thank you for taking the time to give me a detailed reply. I'll give it another few weeks.