Lifetime Allowance Tax Charge

Client has lived for some years in Australia and is  tax-resident there.

Formerly, he was UK resident and built up a substantial UK occupational pension, currently deferred.

The pension, which is in the region of £150,000 per annum, starts next year when he turns 65.

At that level there would normally be a substantial Lifetime Allowance Tax Charge not withstanding that he has applied for and received a Certificate for Fixed Protection from HMRC that fixes his LTA at £1,800,000. 

However, it looks like Article 18 of the UK/Australia Double Tax Treaty might protect him from the LTA charge because it provides that pensions are only taxable in the state of residence of the recipient - in this case Australia.

I don't have too much experience of the operation of Double Tax Treaties so I would be very grateful if anyone could confirm that Article 18 of the Australian Treaty would protect the client from a LTA tax charge.

Thanks. 

 

Comments
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Hope this helps

The Innkeeper |

I don't think so

Steve Kesby |
Steve Kesby's picture