Overseas pension age
Overseas pension age
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Discussion

Jambo85

Original Poster:

3,559 posts

118 months

Friday 1st February 2019
quotequote all
Probably a stupid question but I am wondering if someone can advise on overseas pensions and receiving them in the UK.

It’s a genuine overseas pension – I lived and worked out of the country and contributed to it for several years. Per the company policy this can start to pay out at age 50.

I think I understand that the age you can draw a private pension in the UK (without being taxed to the extent that it might as well have been an ISA of taxed earnings) is 55, and this due to increase to 57 in 2028 which is still long before I am 55. Probably it will increase again before I am 57 but that’s an unknown. There’s a clue to my age in my username.

We are not talking large sums of money here but it would be a nice safety net (either income or lump sum or a mix) were I to try and go self-employed around that age, which I am thinking of making a long term plan towards.

Does any UK law prevent me from receiving this pension prior to age 55? Would it just be regarded as income and would it therefore be subject to income tax at the prevailing rate?

I have a UK private pension and a SIPP too which will be available to me later and cover “proper” retirement, hopefully.

Anything else I should be looking at?

Thanks.



trickywoo

14,177 posts

260 months

Friday 1st February 2019
quotequote all
Jambo85 said:
Does any UK law prevent me from receiving this pension prior to age 55? Would it just be regarded as income and would it therefore be subject to income tax at the prevailing rate?
HMRC won't recognise it as a pension so you can take it when you can / want but it will be subject to UK income tax as you correctly assume.

LeoSayer

7,829 posts

274 months

Friday 1st February 2019
quotequote all
trickywoo said:
... but it will be subject to UK income tax as you correctly assume.
Doesn't that depend on whether it was taxed at source and whether there are double taxation agreements in place between UK and the pension country?

Jambo85

Original Poster:

3,559 posts

118 months

Friday 1st February 2019
quotequote all
LeoSayer said:
trickywoo said:
... but it will be subject to UK income tax as you correctly assume.
Doesn't that depend on whether it was taxed at source and whether there are double taxation agreements in place between UK and the pension country?
Thanks both. I don't think tax was paid on this unless it was done behind the scenes, the pension is administered from a tax haven somewhere so I reckon probably not?