Readers’ forum: UK tax payable on Australian pension income

One of my clients was born in the UK but lived in Australia for 50 years. In 2020 she returned to the UK to live permanently.

She had an Australian superannuation fund which was sold and transferred across to the UK.

In addition she receives an Australian civil service pension. We originally thought this would be subject to 32.5% tax in Australia as she is no longer resident however we now understand that she can elect to have the pension paid to her UK bank account without paying any Australian tax.

I have two questions for Taxation readers:

1) Is our understanding correct?

2) Would that mean the client just pays tax at the normal UK income tax rates with the normal personal income tax allowance?

Any assistance readers can provide will be hugely appreciated.

Query 20 044 – Sunset.

The position will depend on...