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Re: Lump sum from UK pension fund

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I'm new

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Hi, wondered if anyone knows what the tax implications are on receiving a lump sum from a UK pension fund?
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Megastar

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Hi, 

The income will be included in your Australian assessable income, but you can claim the UK tax against the tax payable in Australia. Your Pensions & the tax paid will be converted into AUS $ . The income willl be included under foreign income head, and the taxes you paid, will be added to the foreign income offset.

 

However there is a limit on the total offset you can claim 

 

Please refer the below links for detail

https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/Foreign-income/

 

https://www.ato.gov.au/Individuals/Tax-return/2017/In-detail/Publications/Guide-to-foreign-income-ta...

 

 

Hope it helps.

2 REPLIES 2
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Megastar

Replies 0

 
Highlighted

Best answer

Megastar

Replies 0

Hi, 

The income will be included in your Australian assessable income, but you can claim the UK tax against the tax payable in Australia. Your Pensions & the tax paid will be converted into AUS $ . The income willl be included under foreign income head, and the taxes you paid, will be added to the foreign income offset.

 

However there is a limit on the total offset you can claim 

 

Please refer the below links for detail

https://www.ato.gov.au/Individuals/Income-and-deductions/Income-you-must-declare/Foreign-income/

 

https://www.ato.gov.au/Individuals/Tax-return/2017/In-detail/Publications/Guide-to-foreign-income-ta...

 

 

Hope it helps.