Yes that is correct. I dont want to go against the rule of HMRC. Although immediate annuity scheme by HDFC life is a recognized QROPS by the HMRC, I wonder if anyone working in the UK would be able to access it as the NI number is ***** to this pension and our regular taxes for the income in the UK.
But as a rule is this Annuity taxable by HMRC ignoring the taxation in India. I read somewhere HMRC looks mainly at the corpus which would remain undisturbed in this scheme.
Moreover would HMRC be aware at all that tax is filed in India? Just curious
The HMRC levies heavy penalties of 40~55% for going against the rules to its members.
The annuity is about 7% (~£40000 this would be £2800). Since i have no other income now in India, this would be below the taxation limit in India although i would have to file it.
But I am not sure what the HMRC says specifically on cash benefits from QROPS fund. So do you recommend taking up a defferred annuity scheme to be hassle free?