fromthetoon

Hi,
I am looking at transferring my UK pension over to Australia as I understand that from April 2015 I will be taxed on it when I start claiming.

I have a telephone call tomorrow from Forth Capital - an independent company - who I'm considering going through to assist me in the process (they charge 0.5% of my pension / annum for their services.

I'm just wondering whether anyone knows much about them or whether I'm going down the right track.

Bix

My personal opinion is you should not be paying anyone an annual charge without first looking at Super funds here who may arrange the transfer with you at little or no cost. I paid nothing.

Are you working and already with a fund?
Do you have freedom to choose your own fund? (most people do)
What Super fund do you have already?

Bix

Mate, unless you have a very good company / corporate fund then look at an Industry Fund.

Generally they have lower fees and higher returns meaning more in your pocket.

Two of the better ones from my personal experience are REST and AustralianSuper and they are both QROPS approved.

You have to contact REST to discuss it.
AustralianSuper info is below.....I can't see any mention of a fee for the transfer.

AustralianSuper - How do I transfer my UK pension account to AustralianSuper

fromthetoon

Thanks Bix for your reply. Your advice will be taken.
Much appreciated.

Otto The Squid

Do Forth Capital have an Oz adviser with whom they work with? How can they give advice to Oz residents? Not sure they have a full investment licence ( MiFiD ) for the EU.

And, it looks like Oz Superann funds will fall foul of Section 6 A, part 3 of the new QROPS proposals. If so, a transfer could be taxed. Do not start a move from UK to an Oz QROPS until after the consultation on the new proposals is complete. It looks like Oz QROPS will not comply as it stands and make sure your licenced adviser in Oz checks it out. It could be very costly. I am sure the Oz QROPS providers will make representations to HMRC before the close of contributions on 16th Jan to the debate. But... check and check again.

Bix, there is no such things as an approved QROPS.

fromthetoon

That's interesting Otto.
This is the reply I received from Forth Capital when I explained that I would wait until I speak to a representative of my current pension scheme to see if they can make the transfer easier.

Two key points that you should consider are; 1) whether the advisor in question has ever worked in the UK and in turn acquired the appropriate qualifications, if not, how can they be well versed in giving advice on UK pensions? 2) Whether they will write a report that includes the offshore aspect, I am sure that the report that they provide you with will be just be UK vs AUS QROPS.

With all of our clientele/potential clientele we always suggest covering all angles so you can make an informed decision going forwards.

Otto The Squid

Whatever happens with the new legislation, a move to an Oz QROPS has no reverse gear, so you need to get it right.

Are Forth Capital licenced to give advice to Oz residents? Check that and check their PI cover to make sure the advice is covered. This is a complex subject and things go wrong, even not if anyone's fault. The fallback has to be insurance. I have had no dealings with them and cannot comment, just suggest you check this.

fromthetoon

Thanks Otto, it sounds quite tricky or complicated.

I wondered if I should just leave it until I retire, then have it paid into my UK account each month. I could then transfer it over in bulk every 6 months or so if the exchange rate is good! It only cost me $12 to send over a few $K the other week through FX. Hopefully I wouldn't be taxed or need to pay anyone for their services.

Otto The Squid

Well, to tell someone to leave a pension is advice and that advice needs PI cover, so I cannot tell what is best for you as I am not an IFA. I think you should get clarification of how the new QROPS rules will affect Australia.

Alan Collett

QROPS | Overseas Pension Transfers Australia New Zealand

Consider having a 10 minute conversation with these guys.

Best regards.

marr

Hi Otto - Can you explain in a bit more detail why superannuations would fall foul of this? (Not doubting you - I just want to understand your interpretation).

Bix

So public sector pensions will not be transferable but private ones can be subject to revised rules.....


Time running out for transfer of British pensions

Otto The Squid

Actually, it was not my interpretation, but that of a Tax Barrister that I saw qoute this issue and further comments from a UK law firm. Best check the latest with a local IFA who works in this field.

Sorry, not a good answer.

Otto The Squid

Unfunded public sector schemes will not be able to be transferred. Some are funded, Sussex County Council is- if memory serves me right.

That article suggests that advice for those in Australia by UK FCA regulated advisers will be hard to access. With email and Skype etc, it should not be too difficult for a local adviser to team up with a UK adviser.

Bix

Indeed.

If there's a demand, someone will provide it.