My client was employed abroad and both he and his employer paid into an International Retirement Savings Plan. The employer's contributions were added to his gross earnings and formed part of his UK taxable earnings. No tax relief was allowed on his own contributions as it was a savings plan, not a pension.
He has now decided to cash in his savings and wants to know if he should report this on his UK tax return and if any tax is due. The total contributions made to the fund was £100k and it is now worth £110k. Fidelity, who held the fund, just say it's an "offshore plan and is not governed by HMRC". My client had to complete an International Tax Compliance Form giving his UTR so I'm assuming information will be passed to HMRC. I am thinking the uplift of £10k is taxable foreign interest but please tell me if I'm wrong.
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Hi Suzidog.
Did you manage to ever resolve this question? We've got a similar client and any pointers in regard to how it was eventually treated, would be greatly appreciated.
With thanks,
Jenny
Hi Suzidog.
Did you manage to ever resolve this question? We've got a similar client and any pointers in regard to how it was eventually treated, would be greatly appreciated.
With thanks,
Jenny