Overseas pension

[bmwmike]

I've a pension pot (approx 40k euro) in the Republic of Ireland and as its effectively a SIPP I can draw it at 50, which sadly is only 2 years away, but as i'm planning taxes etc i'm starting to think how best to receive that money.

I've been told by the provider that i can take 25% tax free and the remainder as either a) annuity, b) approved pension fund (no idea what that means) or c) taxed lump sum.

So, assuming i took the 25% tax free, and remaining 75% as a taxed lump sum - what would my tax rate be? If it gets taxed in Ireland, it'll then also be taxed in the UK, presumably, as income? Or, if they give it to me "tax free" i would then pay tax on it here?

Best option may be just to leave it there and revisit in 10 years, but its not done great for the past decade because of the crappy fund options available (only 5 funds - cash, low risk, medium risk, high risk, mixed risk!) and the high fees, so its not going to set the world on fire.

Thanks
Mike

Edited by bmwmike on Thursday 4th May 11:53

[Panamax]

Ireland - you need to consult someone with detailed local knowledge. These things are all creatures of national legislation so it's risky to assume one thing is like another even if they look superficially similar.

Where a UK taxpayer is taxed overseas any tax paid there can usually be set-off against any tax payable in UK. I'm not an expert on this but my belief is it only applies to "tax payable" and not "too much tax paid". In other words, if you were due a refund of tax I think you would need to claim it in Ireland, not UK.

[Kirkmoly]

Check the relevant tax treaty. I haven’t read the one with Ireland but for every one that I have read the provision is: If you draw the whole lot in one go and close the account, you pay tax in the other state. If you draw it gradually in any way, you pay tax in the UK.