²ÝÁñÉçÇø

Hello Ishill,

I hope you will be able to find someone who has experienced the same situation before.

Cheers,

Cheryl

²ÝÁñÉçÇø team

@lshill

What do you mean by "remove" it? And why is there a deadline for this removal?

Or do you mean that he wants to take some/all of it as a lump sump, rather than an ongoing pension?

It depends on your circumstances, I suppose, but, in general, you're likely to be better off with an ongoing pension rather than taking it as a lump sum (hence the requirement for financial advice). Did they specify that you HAD TO PAY AN IFA? Oftentimes you can simply make a declaration that you have consulted an IFA and submit that with your request (rather than actually paying an IFA).

On the utility bill front, did they specify it MUST be a UK bill? I'm mystified by that requirement. Proof of residence is a very common issue, but there's usually an alternative to a utility bill (such as a bank statement, driving license, etc.), and it would be for wherever you're currently living (I.e. Cyprus not UK).

I'm caring for my elderly father who was living in the UK (but now lives with me). I updated his status with HMRC as non-resident, and advised the pension folks (state and private) of his change in circumstances. I got him a Wise account and his pensions are now paid to this in pounds, but it's very easy to make transfers to accounts in other countries (including Cyprus). Or I could have asked for his pensions to be paid into his account outside the UK. They're happy to do either, as you prefer.

Why would they demand it be removed? Have u asked them why?  Have they indicated anything? But it should be transferable. Generally stuff like that usually boils down to eligibility for tax relief... 

Are you still paying into the pension pot .. as it may be that you are still paying into it and maybe they dont allow that if they now know you are not resident and or tax resident there. thus it could be tax relief related

@lshill

Does he mean that he wants to transfer it to an overseas pension?

There used to be an option to transfer a UK pension into a QROPS  (Qualifying Recognised Overseas Pension Scheme), but that now incurs a 25% charge because the exemption from the UK Overseas Transfer Charge now only applies to Malta or Gibraltar, so it's probably not viable now for Cyprus:

With QROPS no longer viable, UK expats must rethink their pension strategy. Leaving your pension in the UK isn’t risk-free.

From 2027, UK pensions will be taxed as part of your estate, meaning you and your beneficiaries could lose up to 70% to inheritance tax.

I am not an IFA or a regulated tax advisor and therefore this info is for information only and as I understand it from my dealings recently!

Company pensions do not accept payments in if you no longer work for the company. If you are over 55 and a tax resident of Cyprus you can complete a DT individual form obtainable from HMRC website. Lodge this with HMRC and then ask the pension provider to pay a small amount from your pension as a drawdown. They will deduct tax from the payment using week 1 month 1 basis as they have no notice of coding for you that's why you take a small amount say 100.00. As the pension is then in drawdown they need to apply to HMRC for a tax ref. As you are not a UK tax resident you will have a tax code of NTX. With the new tax ref from HMRC and the DT Individual lodged at HMRC  the pension provider will then apply this NTX code to your future payments meaning they will not deduct tax at source. You can then request the full cash value of the pension which they will pay tax free. Depending on how long you have lived in Cyprus you might get this tax free or have to pay defense tax on it. Then put the money in something like NS&I Income Bonds and collect the interest.