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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13917
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I moved to southern Ireland in 2012. I am in receipt of a pension

Customer Question

I moved to southern Ireland in 2012. I am in receipt of a pension from Legal & General and a second pension from Royal London. Pension payments are made to my UK bank account and I pay tax under the UK system.
As I am now resident in Ireland should I change the payment arrangements? Should I deal with tax under the Irish system?
It is my intention to withdraw monies from my Royal London scheme, what tax will I have to pay, the pension fund value is £50,000
Submitted: 2 years ago.
Category: Tax
Expert:  Sam replied 2 years ago.
Hi
Thanks for your question
Its up to you, you should be advising the Irish tax office anyway that you have two sources of income entering into the S Ireland but you would then (at things stand) also advise them of the tax you have suffered, so they can then give you credit for this, under the UK - Ireland double taxation treaty.
OR you could complete P85 - detailing to HMRC that you have left the UK, and they could arrange to issues NT (No Tax_ cods to each of the pension payers to pay your pensions free of UK tax - and you then pay tax in Ireland.
Your further questions asks re the withdrawal of the lump sum. You do not advise your age - but if over 55 - which I assume you are, then the first 25% (£12,500) would be tax free and the remaining element of the pot 75% (£37,500) would be liable to tax. If this amount (£37,500) plus your usual annual income (the two pensions paid out in that tax year) is in excess of £42,385 then some of your 75% pension pot figure will be liable to 40%.
Let me know if I can be of any furtehr assistance.
Thanks
Sam