Taxation of UK SIPP (Lump sum and income) in Ireland

J

JamesBM

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I have a SIPP in the UK and am unclear as to the tax treatment in Ireland, particularly if I take a lump sum. I could take 25% tax free by HRMC rules but I am now Irish tax resident and domiciled. Would Irish revenue regard this as income or would it count against my Lifetime Irish limit of €200k tax free? Assume income is more straightforward? I can apply to have it paid gross to HMRC and then pay tax in Ireland?
Seems to be little online about this apart from one technical article which suggested that the lump sum payment from a UK SIPP should not give rise to a tax charge in Ireland nor should it impact the tax free limit. It also suggested that while this was correct legally that Irish Revenue practice differed.
Thanks.
 
I think I read that Finance Act 2022 has brought consistency to the treatment of foreign pension lump sums.

So on that basis you should get €200k tax-free etc.

But have a read/search along those lines.
 
There was some discussion previously on the forum about this, and it appears that the Finance Act 2022 now means that tax free lump sums from a SIPP count towards the Irish 200K limit. The great thing about SIPPs is their flexibility, so if you can afford to wait before accessing the SIPP, you might find the limit more generous in future. Well we can hope ..
 
Thank you both. As you suggested the Finance Act did clarify the position.
 
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