Guest Chelseadownunder

UK Pensions - Face to Face

    Recommended Posts

    Guest Chelseadownunder

    If you would like to discuss your UK pensions with someone who has been through a similar experience to you and is now an established financial planner in Adelaide after being a UK IFA for 9 years please send me a PM.

    It could be a good to look at this as soon as you can after you arrive due to the six month rule and the fact currently markets are moving up (For a change). I can explain further on a one to one basis.

    I hope your all enjoying your time in Adelaide and look forward to seeing you in the future.

    Steve

    Share this post


    Link to post
    Share on other sites
    Guest Chelseadownunder

    Hi Chris & Lucy

    We have family in Donny near you guys.

    In answer to your question please see below.

    Kindest regards

    Steve

     

    Pension Benefits transferred within six months

    Where the overseas super benefits are received within six months

    of the member becoming an Australian tax resident, the entire

    amount transferred is treated as a non-concessional contribution.

    No tax will be applied in Australia, however the full amount will

    count against the non-concessional cap of $150,000 ($450,000

    if the bring-forward provision is available).

    (There is finer detail to this answer which I would provide on a one to one basis as everybodys situation is different but this gives you the basics.)

     

    Share this post


    Link to post
    Share on other sites

    Chris and Lucy,

     

    I would not be fixated on the 6 month window for transferring your UK pension benefits to Australia, as:

     

    1. The tax liability is based on the growth component of your UK pension scheme between the day you become a tax resident of Australia and the day your UK scheme benefits arrive in Australia - not on the entirety of the value of the pension fund.

     

    2. The receiving Aussie superannuation fund (not you) usually pays the tax on this growth component.

     

    3. The rate of tax paid by the Australian super fund is "only" 15%.

     

    4. The transfer of pension benefits to Australia should be seen as a one way transfer, so it would usually be best to ensure you are happy you will be in Australia for the long-ish term before you press the "go" button on the transfer of your pension benefits.

     

    This said, Australia's Foreign Investment Fund Rules can impact on pension arrangements that are left offshore - subject also to your visa status (temporary residents are exempt from the FIF Rules). The FIF Rules (broadly) require you to include the annual growth in the value of your FIFs in your assessable income if they are still held at the end of each Aussie tax year (30th June), even if the FIFs continue to be offshore => planning to mitigate a possible Aussie tax liability under the FIF Rules might be a reason to look at your UK pension fund arrangements sooner rather than later.

     

    Feel able to send me a PM or an email (click on my name to the left of this post) if you would like to know more - we are tax accountants qualified in the UK and in Australia and offer tax consulting advice, tax return assistance (UK and Australia), pension transfer services, and work closely with a selection of financial planners in Australia.

     

    Best regards.

    Share this post


    Link to post
    Share on other sites
    Guest Chelseadownunder

    I would agree not to get hooked up on the six month rule. But obviously its better to know the facts now rather than find out after the event. All my posts are meant to assist and offer help from someone who has been through what your going through.

    Kindest regards

    Steve

    Share this post


    Link to post
    Share on other sites

    Create an account or sign in to comment

    You need to be a member in order to leave a comment

    Create an account

    Sign up for a new account in our community. It's easy!

    Register a new account

    Sign in

    Already have an account? Sign in here.

    Sign In Now