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Double Taxation Agreement (DTA)

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I have a specific question related to my QROPS money purchase pension scheme. If, at the end of December 2023, my funds under investment were (say) £100k, this allows me to drawdown (say) £13.5k per annum. If (say) my funds under investment grow by 7.5% by the end of 2024 – so then my pot is £107.5k – and then I drawdown £13.5k and remit to Thailand – is my liability on either £7.5k (the gain since the end of December 2023), the whole amount of my drawdown (£13.5k), or £0k (can I claim to be drawing down from the capital sum at the end of December 2023?

Pensions are taxed on income, not gains on the pension structure. This is subject to how much income has been remitted, if tax has been paid on this elsewhere and if there is a DTA in place. If there is no DTA, Thailand has the full right to tax any remittance as income, and there is no credit to be given due to no DTA in place.

Category: Double Taxation Agreement (DTA)
Tags: DTA, Pension, QROPS, UK

Tax Advisory Disclaimer

The information on this website is for informational purposes only and is not professional tax advice. For full details, please consult our complete Tax Advisory Disclaimer.