# UK tax on overseas pension and lump sum transfer



## oJadedOne (Aug 15, 2016)

Hi,

I am a British expat of 34 years, during which time I have built up decent savings and a pension. I'm now retired in Malaysia and my pension is being paid in Singapore. In the future I may decide to return to the UK, and I was wondering what would be the tax implications.

As far as I can gather, lump sums transferred to the UK are not taxable, although questions may be asked by the banks to satisfy anti-money laundering regulations. I believe that's the easy part.

Pension payments seem to be more complicated. I'm not considering having my pension paid into a UK bank account, rather I'll be transferring money across as and when required. For example, $10k a month or $100k a year. So would these transfers be considered as "income" for tax purposes?

Any advice would be greatly appreciated.

Cheers


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## Bevdeforges (Nov 16, 2007)

As long as you aren't resident in the UK, you shouldn't be taxed in the UK - other than if your pension is coming from the UK. (I.e. a government pension from the UK). 

If you return to the UK, and your pension is coming from Singapore or somewhere else, then the situation gets a bit more complicated. If there is a tax treaty between the UK and the source country for your pension, the treaty provisions kick in. The treaty should specify which country (the source country or the UK) gets to tax a pension when the taxpayer is resident in the UK or in the source country. With private pensions, it is often the country of residence that taxes the pension - and the tax is incurred on payment of the pension, not on repatriating it back to the the country where you're living. However, tax treaties do vary - so you need to check this.
Cheers,
Bev


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