Tax advice

[zebedee]

Hi,

 

I have an Aussie friend at work who is transferring his UK pension to Australia. He asked me if I knew whether he has to fill in this form https://www.ato.gov.au/Forms/Tax-payable-on-foreign-super-transfer/. I am not really sure so thought I would ask here. He has been back in Australia for 6 years but spent a long time in the UK before hand. My feeling is, probably yes, due to the capital growth.

 

Thanks

[Andrew from Vista Financial]

Hello

 

Tax is due based on any Applicable Fund Earnings (AFE), generally the growth of the fund in Australian Dollars since arriving and the monies being received in Australia.

 

AFE's can be added to one's marginal tax rate and tax paid accordingly or an election can generally be made (if the UK scheme was closed) for the Super Fund to deduct the tax at a concessional rate of 15%.

 

If paying at marginal rate then this would be done at tax time, if electing to have the Super Fund pay the tax then the form is completed accordingly.

 

KR

 

 

Andy

[zebedee]

Thanks Andy, and reminds me, must follow up with you soon about my pension