gld

You have issues on the following

1. Speak to Halewood on 01753 859159 re exchange - socks have holes in
2. Note that you are on a spouse visa which version - needs clarification as it can make a difference on tax
3. Note also you are a former resident could cause tax consequences on pensions but could work in your favour - needs more info - which is where you need advice.

Simone

First of all
And then: I am not in the UK(but in The Netherlands), and am only 21, still at school. So I don't think I have anything to do with pensions yet. Thank god!

gld

Sorry forgot to say- ignorance is not the issue its the politician and tax people who make this so complex with booby traps all over the place. Just take advice - know before you go - don't get surprises

Simone

I understand I need advice, but sorry, you're not helping, just making it more complex(which I guess it is) and more confusing.
It also may my english, but I have a feeling some english people also find it to confusing.
I realise though, in all respect, that with all your knowledge, it may be hard to keep it simple.

gld

Simone

You have it one. It is complex and there is no way round it, that is why I worry when people say its easy

dracupg

This is true. Strictly speaking you have 6 months. In reality, you cannot transfer your UK pension to Oz until you have a suitable Oz Super fund to transfer it to. Generally, you would not open an Oz Super fund until you get a job in Oz and have income to put in it, and most/some PRs would not have jobs until some time after they take up residency.

Say you arrive in January, it take you 2 months to get a job. The job may have a 1-6 month probation/temp period during which time you Super contribution would be held in a temporary Super fund (certainly not a fund you would want to transfer your UK pensions into). I would suggest most PRs would be 6 months into their residency before they can initiate any sort of transfer. I think you need a reference from your employer as well, and a letter from you Super fund confirming your status.

The ATO are very like the Inland Revenue in that if you are seen to be adhering to the spirit of the legislation, there is a certain amount of flexibility.

When you transfer a UK pension to an Oz Super fund, it should be direct. Not via any third party fund/investment or intermediary. I would certainly not advocate transferring a UK pension into cash or a fund pending AUD/GBP currency fluctuation. The instant you do that, you lose the tax free status of the pension fund. The transfer has to be direct from the UK pension to the Oz Super fund, otherwise there will be problems with the ATO at this end as well.

The decision is do you do it yourself, or delegate it to a third party. My opinion is that it is not that big a deal and you should do it yourself. If you are capable of applying for migration, I reckon you are capable of transferring your pensions over.

In order to decide whether to transfer over or not, I would ask 2 very simple questions:- 1) Do you intend to retire in Oz? and 2) Do you have 15 year or more before you retire. If you answer yes to both of these, transfer them over. If not, perhaps you should consult a third party.

Only my opinion you understand.

gld

Presuming one or more funds should be moved is the basis of how I respond. Hope this comes across the right way as stating fact. The only way that flexibility could be applied is by asking the ATO for flexibility. Flexibility is not in the legislation - i.e. you would have to apply for flexibility. Self-Assessment means you put it in your return, if you don't its evasion. So by elimination there can't be felsibility which was covered in the Senate Enquiry. If someone has had flexibility then some official may have overstepped the mark.

Advance planning means the six months is within grasp of most funds and possible transfers. The art is to get the benefits "front loaded" i.e. packaged in order that the funds can be transferred should it be the best advice. You don't have to transfer but you are ready to transfer - subtle difference. That is why the six months is progressively becoming not a problem for the pre-planned migrants and they also have access to increasing the cost base, i.e. reducing the tax.

PR's and TR's can work in Australia of course, if you wait until you get a job then you are eating into the six months- this is the argument for preparation. Why wait until you get the job? Some PR's and TR's should not transfer their funds others should.

All the paperwork can be set up in advance. Waiting to prepare can result in a guaranteed tax liability. Why unnecessarily eat into the six months - those who do tend to panic and then either transfer or not transfer all because of the tax threat which can be managed.

Migrants can by taking advice pre-departure commence where appropriate merging two or more pension funds into one scheme. That scheme can allow control over the exchange rate consequentially cutting the transfer costs - especially if that UK scheme is able to buy A$ when the rate is right.

Thus by front-loading a transfer application the pension can be released within days- when the agreed fax confirming employment is received and the scheme is geared up.

As to documentation it must be belt and braces - all of which can be dealt with early in the process so there are no hiccups by getting documents to the UK pension scheme even before you leave. This cannot be done by an Australian advisor because if they did they would be advising without a licence.

As regards flexibility - as it is self assessment in Australia then you would have to have a private ruling - you can't just make the rules up and create your own flexibility.

Your comments its best if I comment on phrase by phrase..

"When you transfer a UK pension to an Oz Super fund, it should be direct."

Correct

"Not via any third party fund/investment or intermediary".

Correct

"I would certainly not advocate transferring a UK pension into cash"

You cannot transfer into cash within the UK unless in a few unusual situations.

"or a fund pending AUD/GBP currency fluctuation".

You are exposed to currency anyway take the risk out as much as possible - grab the rate when you can. If the fund should move.

"The instant you do that, you lose the tax free status of the pension fund."

Sorry that's quite on the button if you move UK pension to UK pension there is no loss of status. I have already stated that you cannot turn into cash a UK pension fund. We would never ever move a fund into a cash - because we can't do it, because of the pension regs.

"The transfer has to be direct from the UK pension to the Oz Super fund, otherwise there will be problems with the ATO at this end as well."

Correct

As regards do it yourself - then fine but you still need third parties, i.e. a suitable receiving scheme. Some work on the TINSTAAFL theory others on the explicit charge others on fees.

Not all funds should be transferred, Hence why pension transfers are now a permitted activity as far as UK is concerned there are now but 1800 advisors licensed (last figure advised of) to give pension transfer advice - pensions are not straightforward.

I am not advertising services just stating fact. I accept your opinion of what you feel is right unfortunately we who are regulated have to go into far greater detail and research before we give advice to protect the customer from making the wrong decision.

Hope this helps - no doubt somebody will think its an advert.

Cheers

sashadan

thanx for advice

i'm going to withdraw dosh out of my abbey nat in dollars b4 i close it down

sd

gld

Sashadan

You will find that Abbey National will not hold the funds in A$ and look at the posting I confirmed you can't take money out of a UK scheme - if its Abbey Nat could be penalties that need checking. And you should make certain that the rate is being bought at commercial rates. Watch the hidden costs

Thanks for the thanks


Geraint

sashadan

thanks gld

we are (hopefully) going to draw cash out as if we were going on holiday in oz$,leaving about 50 quid in the account ,

we are then going to draw that£50 from the uk atm,then walk inside bank to close account.

looked ok in theory





cheers

gld

Are you talking pensions or plain cash?

WBB

i took it as cash.

shedu

Hello to you all,

Just to add to this confusion -

I am initially coming on a long-stay temp visa (employer sponsored). So within a month of arriving I will be an Australian tax payer and be paying into a superann fund. Does this make me a tax resident? I understand I cannot start organising my UK superann transfer until I have a permanent visa but as a tax resident when does my 6 months start????

I have arranged to go and see a professional asap after I arrive. I think I will want to stay but may not get a permanent visa??

So I will end up paying for someone to do something I probably could do myself but what I do not have is any knowledge of either UK or Aus tax laws and I am prepared to pay for that.

Does all this give anyone else a migraine??

Regards

gld

Must have been an Occupational or one which had trivial benefits as defined by legislation. This means monies would have left the pension scheme and could not be rolled into Oz - no advantage lost - no advantage to gain

Cheers

Thoughts on Cardiff merge with Warriors???

WBB

wrong person to be asking, i am a football man