New pension rules, and expat.

[caziques]

I have some private pensions in the UK, and no intention of going back there to live - and I'm 57.

It would appear that from 1st April I can draw out 1100 pounds a month, with the following result:

13,200 a year - 25% tax free, leaving 9900 - hence no tax to pay in the UK.

And no tax will have to paid to HMRC and reclaimed as it would be a monthly amount. Taking 13,200 in the first month would apparently trigger all sorts of things.

Anybody else with a different understanding?

[Claudia Skies]

• You can take the 25% tax free as lump sum at the outset. Nothing's changing on that.

• From April 2015 you can draw out as much taxable cash as you like and it's taxed at your UK marginal rate. It seems to me that if you keep those withdrawals within the "nil" income tax band then that's tax free as well.

What about your UK state pension, if any? [Don't forget that's taxable once it comes into payment in the same way as any other income.]

[Ginge R]

Caziques,

Have you considered transferring it to your new domicile?

[LC23]

You also need to consider the tax position in your country of residence.

[caziques]

State pension is an interesting one. I will qualify for a full NZ one at 65, as long as I hand over any entitlement to a UK one to NZ government - as my NI record isn't that flash I will be better off. (not forgetting the frozen pension scandal that also won't concern me).

If I bring pensions to NZ they will be taxed at 15% of their total value, whereas if they are brought in gradually as capital they can be offset against other tax losses I have here (long story).

I still think 1100 pounds a month is the way to go. If I did this with two (or more) pensions would HMRC realize? Trying to recover tax from people living overseas is not easy, as they found with Octav Botnar.

[PurpleMoonlight]

caziques said:

I still think 1100 pounds a month is the way to go. If I did this with two (or more) pensions would HMRC realize? Trying to recover tax from people living overseas is not easy, as they found with Octav Botnar.

Yes they will realise, and its taxed at source under PAYE so there is not recovery issue for them.