Calculating the amount tax will be paid on for pension transfers
Mar 1st 2015, 11:32 pm
#1
I've got time . . . . .
Thread Starter
Joined: Apr 2006
Location: SE Queensland
Posts: 574
Calculating the amount tax will be paid on for pension transfers
Hi,
we have been over since 2007 and are finally transferring our UK pensions over. As we understand it we are eligible for tax on the amount the pension has increased since we became resident.
NHS pensions are unhelpful on what the pension was worth in 2007 (saying they will tell us for 405 pounds!!).
Is there any way to work this out or to use an online calculator to work backwards from its current value?
Thanks
we have been over since 2007 and are finally transferring our UK pensions over. As we understand it we are eligible for tax on the amount the pension has increased since we became resident.
NHS pensions are unhelpful on what the pension was worth in 2007 (saying they will tell us for 405 pounds!!).
Is there any way to work this out or to use an online calculator to work backwards from its current value?
Thanks
Mar 2nd 2015, 12:49 am
#2
da Bonehead
Joined: Jan 2004
Location: Lion in da jungle
Posts: 22,767
Re: Calculating the amount tax will be paid on for pension transfers
I think you have 6 months grace from the time you became tax resident and then it's 15% tax on the growth portion of your pension.
However are you aware of the changes taking place?
http://britishexpats.com/forum/austr...ion-uk-850284/
However are you aware of the changes taking place?
http://britishexpats.com/forum/austr...ion-uk-850284/
Mar 2nd 2015, 2:52 am
#3
I've got time . . . . .
Thread Starter
Joined: Apr 2006
Location: SE Queensland
Posts: 574
Re: Calculating the amount tax will be paid on for pension transfers
Its more complicated than that I think but we would like to work out what it was worth before we brought it over (we have it here now).
Since its frozen/index linked it should be able to work backwards from its current value to work out what it was worth when we first came to Australia without us paying NHS pensions 400 pound for them to calculate it for us.
Since its frozen/index linked it should be able to work backwards from its current value to work out what it was worth when we first came to Australia without us paying NHS pensions 400 pound for them to calculate it for us.
Last edited by temptininnit; Mar 2nd 2015 at 4:39 am.
Mar 2nd 2015, 6:47 pm
#4
BE Enthusiast
Joined: Feb 2014
Posts: 592
Re: Calculating the amount tax will be paid on for pension transfers
I specialise in pension transfers - if the funds have been brought over already from the NHS they normally will not provide a historical valuation anyway.
There are a number of options for you but if you know the growth value each year you can then simply do a calculation backwards to come up with the figures. NHS is indexed each year by CPI or 5 % capped each year. It is a simple check on the net to get the historical growth rates for CPI. Then using those rates simply apply it backwards until you get a start figure.
Don't forget that you need to use the ato historical exchange rates for currency when converting the start GBP figure to OZ. (a simple search of ato site will show you these)
The above will then allow you to calculate backwards and convert correctly and then you can work out growth on the fund.
Remember to keep detail records of the calculations etc for the tax man should you be audited.
Once done if you have transferred the full amount over then you have the right to make an election to pay the tax through the super fund at 15 %.
I hope the above helps
There are a number of options for you but if you know the growth value each year you can then simply do a calculation backwards to come up with the figures. NHS is indexed each year by CPI or 5 % capped each year. It is a simple check on the net to get the historical growth rates for CPI. Then using those rates simply apply it backwards until you get a start figure.
Don't forget that you need to use the ato historical exchange rates for currency when converting the start GBP figure to OZ. (a simple search of ato site will show you these)
The above will then allow you to calculate backwards and convert correctly and then you can work out growth on the fund.
Remember to keep detail records of the calculations etc for the tax man should you be audited.
Once done if you have transferred the full amount over then you have the right to make an election to pay the tax through the super fund at 15 %.
I hope the above helps
