| [s164] |
Broadly, overseas resident individuals receiving pension
payments from a
registered pension scheme established in the UK
are liable to UK income tax unless they are exempted by virtue of a
double taxation agreement. A double taxation arrangement means an
agreement between the UK and any territory outside the UK as set
out in section 788 ICTA 1988.
They are also subject to the annual and
lifetime allowances, and their associated charges,
and liable to other charges under Part 4, such as the
unauthorised payments charge (see
RPSM04104500). However, charges
under Part 4 will normally only apply to overseas resident
individuals if they were active members of the scheme whilst being
a
relevant UK individual. So, effectively, members
of registered pension schemes will normally not be chargeable if
they have never been UK resident and have never benefited from UK
tax relief on contributions to the scheme.
An unauthorised payments charge would arise if a payment to or in respect of an individual from a registered pension scheme did not qualify as an authorised member payment under section 164 (see RPSM04100040).
A
lifetime allowance charge would only arise if the
total value of an individual's crystallised benefits exceeded their
lifetime allowance. The benefits are those from
registered pension schemes, as well as any from certain overseas
pension schemes relating to UK tax-relieved contributions made
after 5 April 2006 (see
RPSM13101010).
The
standard lifetime allowance will be £1.5
million in the 2006/07 tax year and will rise subsequently. A
member of a registered pension scheme can enhance their standard
lifetime allowance in respect of part of an active membership
period of the scheme during which they were a
relevant overseas individual (see
RPSM13100120). That offsets the
benefits relating to any contributions made by or in respect of the
individual to the scheme, or to any increase in value of the
individual's rights under the scheme, during that period.
The lifetime allowance charge and the unauthorised payments
charge apply regardless of where the individual is resident,
subject to the exception referred to in the second paragraph above.
They are not covered by double taxation agreements as they are not
taxes on income but rather taxes on excess relief.
| Glossary ( RPSM20000000) |
