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TonyTax
TonyTax, Tax Consultant
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I have an Australian Superanuation Pension Fund which is relating

Resolved Question:

I have an Australian Superanuation Pension Fund which is relating to my residence and employment in Australia from March 1994 to March 1999, i was a permanent resident there working for an Australian company and paying Australian tax, I transfered to Australia from Thailand where I had also worked for 5 years, and prior to that Malta, all in all I was an expat for 13 years, I left Australia in 1999 and came back to live in the UK, Under Australian laws I can access my superannuation/pension money as a tax free lump sum payment or I can drawdown as a pension income also tax free. What I need to know is would I be taxed in the UK if I took either option ?, I understand that I may be able to claim/receive this money free of tax under the exemption ESC A10 based on situation, however I am really not sure and HMRC does not give me any answer to this ?
Submitted: 2 years ago.
Category: Tax
Expert:  TonyTax replied 2 years ago.
Hi.

Did you stop working for the Australian employer before you came back to the UK?
Customer: replied 2 years ago.

yes i did

Expert:  TonyTax replied 2 years ago.
Thanks.

Leave this with me while I draft my answer.
Customer: replied 2 years ago.

Ok Thanks

Customer: replied 2 years ago.

Oh Yes I forgot to mention, My Australian Superannuation/pension is Under Australian Law TAX free once i reach the age of 60 years, I am not 60 yet but will be very soon hence the reason for me making enquiries now. thanks

Expert:  TonyTax replied 2 years ago.
Hi again.

Article 17 of the UK/Australia tax treaty here deals with pension income. As a UK resident, any pension income (as opposed to a lump sum) you receive will be taxable in the UK.

ESC A10 here gave relief from UK for lump sums paid out from foreign pension funds depending on the length of service and the proportion of that service carried on outside the UK.

ESC A10 was enacted into legislation with effect from 6 April 2011 as you will see here and here. As far as I can see, given that you pension fund appears to relate 100% to working outside the UK, any lump sum you take should be UK tax free. Although ESC A10 no longer exists, it effectiveness applies to pension rights accrued before 6 April 2011 so you would appear to be covered by both the old and new rules.

If I were you, I would ask HMRC for one of their technical sections that specialises in foreign pensions to look at your situation. Your letters may have been passed to such a section and it can take some time to get a response. It's worth chasing them again.

I hope this helps but let me know if you have any further questions.
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