Taxation of UK pension, non-UK resident

Been asked for help re pension income.

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Hi all, long time reader, very occasional poster.

A week before the deadline, my girlfriend's mum has decided to think about her tax return and has asked for my advice (god help me). I work in a larger accounting firm, but this is outside my recent experience so I would appreciate confirmation (or otherwise) of my thoughts.

Details; Individual is UK citizen & UK dom but resident in the Dutch Caribbean. There is no tax treaty with the UK. The 'personal allowance' out there is USD275,000, so local taxes will be nil.

UK state pension - taxable
UK private pension - taxable, other than initial tax free lump sum (15/16 was the first year she took anything from a private pension)
UK rental income, registered under NRL scheme - taxable

Does that seem right?

Replies (2)

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By Marion Hayes
24th Jan 2017 14:45

Only hint of caution - not sure but would check with private pension company to make sure lump sum remains non-taxable if client not resident for tax purposes.
Not sure why my mind thinks otherwise but they will know. Just because they didn't tax it doesn't mean they realised she was non-resident

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Replying to Marion Hayes:
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By IslingtonAccountant
24th Jan 2017 15:41

Thanks for that.

Tax having been deducted has been mentioned, but as I know next to nothing about the rules surrounding taking income out of pensions my advice will be to talk to the pension company to find out what they've done and why they've done it!

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