UK pensions state and private

S

Scoop64

Registered User
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As I understand it at retirement you can claim a Irish state pension and a state UK one, are you taxed on the UK one. ( Been living in Ireland 22 years I am 60 yrs old).

I Have a private pension in UK ,is there any benefits in transfering this pension back to Ireland?
On the UK pension the policy states I can take 25% tax free rest paid over lifetime or take all as Lump sum but looks like I will be heavily taxed on it, can you claim UK tax bill back in Ireland on the Lump sum or will you be taxed on it here to.

My wife has a small UK pension with Aviva she made a enquiry to Aviva about her pension taking 25% rest over lifetime, she was told this option is not available to you as you do not live in UK and you no longer have a UK bank account, your only option is to withdraw the whole amount which you will be taxed on it,
Is the norm for pensions in UK ?
My pension provider saids the option of 25% tax free rest over lifetime still applies to me I have recently enquired about this , why not with my wifes policy with Aviva.
Thanks for any advice.
 
What employment in the UK gave rise to the pension- was it private or public?
If public, in what service(s)?

The tax jn Ireland depends on the answer
 
Ok , so I will be taxed on the UK state pension .

As for the private pension if I took whole amount as a lump sum I understand the first 25% will tax free the remainder will taxed in UK which is high as I have use my pension providers own calculator, can I claim any tax back as living in Ireland from the UK,
Also will this be taxed on Ireland.
 
It is a private pension which arouse from opting out in 1989 , it was to encourage people in UK into a private pension, opting out I believe this is no longer available now in UK .
I actually haven't contributed to this private pension since I moved to Ireland but get updates what it is worth every year and what my options are .
 
Scoop64 said:
On the UK pension the policy states I can take 25% tax free rest paid over lifetime or take all as Lump sum but looks like I will be heavily taxed on it, can you claim UK tax bill back in Ireland on the Lump sum or will you be taxed on it here to.
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According to Revenue.ie, the lifetime tax-free amount on a lump sum is €200,000 - that's around £167000 at today's rate. See here: https://www.revenue.ie/en/tax-profe...x-corporation-tax/part-07/07-01-09a.pdf#page4

Scoop64 said:
I Have a private pension in UK ,is there any benefits in transfering this pension back to Ireland?
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That depends. Also not all private pensions can be transferred. This may help.

I have UK state and private pensions and no uk tax has ever been payable on these, but you have to contact HMRC to arrange this.
 
Your UK personal pension did you take it as a lump sum or the 25%tax free rest paid over lifetime.
 
The second. I think the full lump sum option is only available since 2015. I started drawing down my private pensions before that.
 
I too have a private and state UK pension. With the private one (2018) I had an option to get it at a full 'transfer value' into a new pension instrument of my choice, but that was regulated so you could not take it all as lump sum and had to get financial advice as It had to go into a new pension fund. I chose to take the normal lump sum, declared it in Ireland and it was not taxed. I get monthly pension payments also. I had to fill a form for Hmrc and it was declared to Revenue and I pay tax on it here now - my tax credits were reduced - so effectively the tax comes out of my Irish salary. I'm happy with that arrangement.
 
The normal Lump you refer to was that the 25% tax free of the lump sum.
Thanks for all the advice so far, probably will need financial advice on it anyway ,
I have the UK pension advice service ringing me on the 17th march , apparently they will speak to you up to a hour don't think I will keep them that long, think my questions will be straight forward.
Anyone here use the service before.
 
Not sure what you mean by 25% tax free of the lump sum. My Lump sum was calculated by the employer based on salary and number of years worked.
 
Sorry might have replied to wrong person, My pension is not a employer based pension, private pension ,option of 25% tax free then rest paid over lifetime.
 
I Will be in a similar position to yourself, but i have 3 uk private pension, that are still ongoing. I did look at transferring them over but the QROPS seemed abit of a mine field.
A question to all that are already receiving UK private pensions, are these being paid into a UK bank account, or being transferred over into an Irish euro account? I used to have a barclays account, but with brexit was told not being a resident i could no longer keep this. I believe you can still get sterling accounts living in Ireland, or do you guys use the likes of Revolut?
Also with your 25% tax free did you take that as a lump sum, or split this over your life time allowance. (i wish this was allowed in Ireland, as you can only take the full 25% at the start, per policy)
 
Andynb said:
A question to all that are already receiving UK private pensions, are these being paid into a UK bank account, or being transferred over into an Irish euro account?
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My three UK pensions (including state pension) are paid into my HSBC account, and earn more interest there than any other financial institution I have access to. I move a wadge over here when it's needed via Wise.

Andynb said:
I believe you can still get sterling accounts living in Ireland
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You can. For the purpose of probate my husband opened a Sterling account with Bank of Ireland UK in Newry - his opening documents were validated in our local BOI. It's a basic account with no option for savings or deposit accounts.

Andynb said:
Also with your 25% tax free did you take that as a lump sum, or split this over your life time allowance
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As a lump sum.
 
Were you heavily tax taking it as a Lump sum from the UK pension if so could you claim it back being a resident in Ireland.
 
No tax was either paid or claimed back since my total lump sums did not exceed the tax-free limit.

This gives all the info you need about tax free pension lump sums in the UK.

Tax when you get a pension

Income Tax on payments from pensions, tax-free allowances, how you pay tax on pensions.
www.gov.uk

And the Revenue link I posted in an earlier reply has clear information about the tax free treatment of lump sums from foreign pensions.
 
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