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bigduckontax
bigduckontax, Accountant
Category: Tax
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Experience:  FCCA FCMA CGMA ACIS
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I am 61 yrs old and have been an Australian citizen

Customer Question

I am 61 yrs old and have been an Australian citizen for 11 yrs, originally from the UK. I have transferred my UK pension to a QROPS. I am planning to retire in the next few weeks and to arrange an income stream account with my super fund. Do I have to pay UK tax on the UK component of the income stream?
Submitted: 1 year ago.
Category: Tax
Expert:  bigduckontax replied 1 year ago.
Hello, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question. It is normal for pensions to be taxed in their country of origin so you would be taxed in the UK on the relevant component of the scheme. There is a Double Taxation Treaty between the UK and Australia which precludes the same income stream from being taxed in both jurisdictions. This is achieved by means of tax credits, the tax paid in one country being allowed as a tax credit against the liability in the other. The Treaty does not, however, protect you from differences in rates of taxation. If you are an EEA citizen ie holding dual nationality, then as far as UK tax is concerned you are entitled to a personal allowance, currently 10.6K, to offset this pension income. I do hope that my reply has been of assistance.
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Expert:  bigduckontax replied 1 year ago.
Thank you for your support.
I note that Oz recognizes dual nationality unlike, for example, Germany.

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