Income Tax (Earnings and Pensions) Act 2003 section 576A

Temporary non-residents

Section 576A ensures that certain pension withdrawals from non-UK schemes taken during a period of temporary non-residence are brought back into charge to UK income tax when the individual returns to the UK.

• Withdrawals from flexible drawdown pension arrangements under relevant non-UK schemes made during temporary non-residence are treated as taxable pension income arising when the individual returns to the UK
• The provision catches a wide range of payment types including income withdrawals, short-term annuities, certain decreasing lifetime annuities, relevant lump sums, and small scheme pensions — whether paid to the member, a dependant, a nominee, or a successor
• The section does not apply where the withdrawal is unconnected to UK tax-relieved funds or relevant transfer funds, but double taxation agreements cannot be used to override the resulting UK tax charge
• Where the remittance basis applies to the individual for the year of return, amounts remitted to the UK during the temporary absence are treated as remitted in the period of return