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bigduckontax
bigduckontax, Accountant
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I am in receipt of Australian Superannuation which is tax free

Resolved Question:

I am in receipt of Australian Superannuation which is tax free for over 60s as it comes from a Taxed Source. I am now retired and resident in the UK. Does this remain tax free for me in the UK too please?
Submitted: 3 years ago.
Category: Tax
Expert:  bigduckontax replied 3 years ago.
Hello, I'm Keith and happy to help you with your question.

Bad news I'm afraid, it is liable to UK Income Tax and you should declare it on your Self Assessment return.

Regarding foreign pensions HMRC advises:

'Tax on foreign pensions

If you receive a pension from a foreign country while you're living in the UK it will be subject to UK tax rules. How much tax you'll pay on overseas income depends on whether you're 'resident', 'ordinarily resident' or 'domiciled' in the UK.'

You say you are resident so this emolument is taxable. You do, of course, have the usual Personal Allowance to set against the income.
Customer: replied 3 years ago.

Thank you. Does it make any difference that the superannuation is for illhealth retirement for a work related injury?

Expert:  bigduckontax replied 3 years ago.
Please wait whilst I investigate.
Expert:  bigduckontax replied 3 years ago.

In the UK ill health etc pensions are taxed as normal UK income. There are some UK disability pensions which are tax free eg some military disability pensions. Even if your Australian pension came within such parameters it would still be subject to UK Income Tax, but it would be worth putting a case up to HMRC for exemption.

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