weegogs

I'm looking for info on cashing in my uk pension to Australia. I recently turned 55 and have a pension with royal london when I had opted out of serps years ago (badly advised had to opt back in years later). Once your 55 you can cash in 25% tax free but when I called them they said because I now live in oz I had to either take it all or leave it where it is. My reason for cashing it in rather than transferring it to my oz pension is to have a bit of a cash nest egg as I'm planning on having my knees done and as such I will be of work for many months and also my elderly father is still in the uk and if I needed to return there in a hurry for a few months I could. The only info I can seem to find is if I'm transferring from uk pension to oz pension not cashing in my uk pension. Any help appreciated.

scotty9000

Can you still get the 25% tax free as an Australian tax resident?

rammygirl

You will be taxed by the ATO both on the lump sum and future withdrawals. There are some offsets though.
Speak again to your pension company. They should be able to let you take part lump sum and trigger drawdowns. Ask for written information.

Timing for tax will be important and could save you cash. Seek advice from an accountant who understands foreign pensions.

weegogs

As far as I believe it, you cannot get the 25% tax free, I was told by RL that I would have to take the lot as one transaction or leave it where it was until later. If I were to take it all my believe is I would be taxed in oz on the growth from the date I emigrated to oz. Maybe someone can clarify this. Regards

rammygirl

This might shed some light
https://www.directdocs.com.au/ozstomember.html

I’m not sure why your pension scheme is saying all or nothing though, unless you have a smaller amount in it? The rules for withdrawal don’t change because you live overseas just the tax treatment. Are you sure they don’t think you want to transfer the pension rather than just draw it.