Densrene

U.k. Pensions and tax

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    Hi there, just wondering if someone can help me with this request. My wife and I are applying for the parental visa, what do we do regarding our u.k. Pensions and tax, would we be expected to,pay in Australia.

    Many thanks.

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    Hi there. Just giving this a bump for you.

     

    There are a couple of threads posted by Andrew at Vista that may be of use

     

    http://www.pomsinadelaide.com/forum/money-finance/43609-government-response-uk-pension-ban-australia-qrops.html

     

    http://www.pomsinadelaide.com/forum/money-finance/44587-pension-transfer-ban-update-nhs-etc.html

     

    It may also be helpful to give Andrew a call or drop him an email to see if he can help give you some advice based on your visa type and so on. His contact info is in his sig and on his website.

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    I agree with Snifter ask @Andrew from Vista Financial he is the expert here plus he is in Adelaide

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    Your UK pension income will be wholly taxable in Australia once you have become a tax resident of Australia - assuming you are applying for a subclass 143 visa (the tax situation is different if you are adopting a 2-step 173 to 143 visa strategy).

     

    There is a HM Revenue form to be completed and stamped by the ATO to ensure a NT (No Tax) PAYE Coding is applied to your UK source pensions.

     

    In Australia there may be a tax deduction available for what is called the UPP (Undeducted Purchase Price) of the pension.

     

    For UK State Pensions this is 8% of the amount received:

    https://www.ato.gov.au/Individuals/Tax-Return/2014/Supplementary-tax-return/Deduction-questions-D11-D15/D11---Deductible-amount-of-undeducted-purchase-price-of-a-foreign-pension-or-annuity/

    (scroll down to the text on British Pensions)

     

    Best regards.

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