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@gaz1

I claim a UK private pension and have been doing so for over four years now.

I've also made lump sum draw downs.

Firstly, there is an agreement between the UK and Bulgaria of single taxation only, so you can only be taxed once.

Secondly, you will find that when your pension administrator pays your pension every month, income tax is deducted automatically (as PAYE). This is how my pension is paid.

You can, however, notify your Pension administrator and HM Revenue and Customs, that you wish to be registered under the Bulgarian tax authority.  However, this may not be as straightforward as it might appear and that is why I have not gone down that route.

Firstly, you would have to rely on your pension administrator remembering not to deduct tax every month. If your administrator deducted tax by accident, you'd then have the, very laborious, task of having to claim it back from HMRC. Further, this could easily lead to your tax code being altered against your favour. I have already had an issue with my tax code and I spent nearly an hour and a half on the phone (most of that time, spent waiting to be connected) getting it sorted out.

Further, you may also find that your pension administrator is obliged to deduct tax (PAYE) and you may be told that it is your responsibility to claim it back from the HMRC,.

Whilst the Bulgarian "state"  pension is not taxable, I'm not at all sure of how the Bulgarian authorities view "private"  pensions.  If, however, private pensions are taxable in Bulgaria (I'd be interested to know if anyone has confirmed this) there is the other issue, that Bulgaria does not have a tax allowance, so you would not get the £12,570 tax allowance that you get in the UK.  Of course, the tax rate in Bulgaria is lower at only 10%, so it's swings and roundabouts.

I worked out the tax difference between the two countries on my yearly pension and it's around £450 more tax in the UK, taking the personal allowance into account.

On the subject of lump sum payments, you are entitled to a tax free lump sum. You can "crystallise" up to 25% of your pension pot and take it tax free. So, for example, if your pension pot is £250,000, you could crystallise £62,500 and drawdown on it without paying tax.  You not have to take the full 25% in one go, you can draw it gradually, as and when you need to.  This has the advantage, that your pension pot retains more in it to invest.

Lump sum crystallisation is also another reason to keep to UK taxation.

Hope this helps

Ian

@cyberescue1

"Single taxation" doesn't exist. To prevent confusion, use the correct term. It's a Double Taxation Agreement.

A double taxation agreement (DTA) is a treaty between two countries that prevents individuals and businesses from being taxed twice on the same income. These treaties provide a framework for international taxation and are intended to foster cross-border trade and investment.  The UK has this agreement with 130 countries.

@gaz1
I claim a UK private pension and have been doing so for over four years now.
I've also made lump sum draw downs.
Firstly, there is an agreement between the UK and Bulgaria of single taxation only, so you can only be taxed once.

Secondly, you will find that when your pension administrator pays your pension every month, income tax is deducted automatically (as PAYE). This is how my pension is paid.
You can, however, notify your Pension administrator and HM Revenue and Customs, that you wish to be registered under the Bulgarian tax authority. However, this may not be as straightforward as it might appear and that is why I have not gone down that route.
Firstly, you would have to rely on your pension administrator remembering not to deduct tax every month. If your administrator deducted tax by accident, you'd then have the, very laborious, task of having to claim it back from HMRC. Further, this could easily lead to your tax code being altered against your favour. I have already had an issue with my tax code and I spent nearly an hour and a half on the phone (most of that time, spent waiting to be connected) getting it sorted out.
Further, you may also find that your pension administrator is obliged to deduct tax (PAYE) and you may be told that it is your responsibility to claim it back from the HMRC,.

Whilst the Bulgarian "state" pension is not taxable, I'm not at all sure of how the Bulgarian authorities view "private" pensions. If, however, private pensions are taxable in Bulgaria (I'd be interested to know if anyone has confirmed this) there is the other issue, that Bulgaria does not have a tax allowance, so you would not get the £12,570 tax allowance that you get in the UK. Of course, the tax rate in Bulgaria is lower at only 10%, so it's swings and roundabouts.
I worked out the tax difference between the two countries on my yearly pension and it's around £450 more tax in the UK, taking the personal allowance into account.

On the subject of lump sum payments, you are entitled to a tax free lump sum. You can "crystallise" up to 25% of your pension pot and take it tax free. So, for example, if your pension pot is £250,000, you could crystallise £62,500 and drawdown on it without paying tax. You not have to take the full 25% in one go, you can draw it gradually, as and when you need to. This has the advantage, that your pension pot retains more in it to invest.
Lump sum crystallisation is also another reason to keep to UK taxation.

Hope this helps

Ian - @cyberescue1

We've got the same problem here in Hungary.  State pensions are not taxable.  I think this also applies to foreign pensions from state sources - this survived Brexit as it was a social security treaty outside of the EU membership.  Private pensions, no idea about those but presumably for average persons, these are small amounts, probably under the tax threshold. 

SImCityAT is quite right, one has to look at the DTA (Double Taxation Agreement).   They are all quite similar or the same in the EU and follow an OECD model.

@fluffy2560

Private pensions are taxed in the UK, it's only state pensions that aren't for residents abroad. When I get to retirement age, I doubt I will get anything; if I do, it will be some loose change. I will get an Austrian pension, though. But I have some private pensions from the UK. I am not going anywhere. I am happy here and with the healthcare.

@fluffy2560
Private pensions are taxed in the UK, it's only state pensions that aren't for residents abroad. When I get to retirement age, I doubt I will get anything; if I do, it will be some loose change. I will get an Austrian pension, though. But I have some private pensions from the UK. I am not going anywhere. I am happy here and with the healthcare. - @SimCityAT

It'll depend on your tax residency. 

Really, they should send the money gross without deductions to wherever the person is and that would be up to the recipient to pay the tax locally. 

One alternative is to produce a tax certificate and claim it as credit locally under the DTA. 

The other one is to try and get the cash back from HMRC in the UK which could prove quite difficult from a distance.

Sometimes it's just not worth trying to claim tax back.  The form filling and messing about takes more time than is necessary for a few quid, it's hardly worth the aggravation.

Actually btw, I was listening to the radio and I realised I might have "lost pensions" from companies I worked for in the 1980s - one for about a year and one for maybe 2.5 years.  That was before I left for overseas.   I just went to different jobs after those and never thought about what I might have left behind.  Or if I did think about, I could have done something and forgotten. I have no records at all - no payslips, tax certificates, nothing.  It probably went in the ex-wife's bin when I got divorced.   Meanwhile,  I've tracked down the pension fund operators and I'll have to write them a letter (so old fashioned) to find out if there's anything.

One can look here for info -

@fluffy2560

I did get 2 Tax rebates from the UK only took them 10 years. That was while I was abroad. I should have asked for interest.

@fluffy2560
I did get 2 Tax rebates from the UK only took them 10 years. That was while I was abroad. I should have asked for interest. - @SimCityAT

They should have paid it. 

I think the current rate is something like 8% per annum.