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Moving old Pensions from UK to Australia

Moving old Pensions from UK to Australia

Old Jun 21st 2021, 2:40 am
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Default Moving old Pensions from UK to Australia

Does anyone have any referrals they could suggest for persons/agents, preferably in Perth, WA, who can advise/help in transferring (or not!) old UK pensions into Super funds here in Oz? Need advice on the Super AND Tax implications....
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Old Jun 22nd 2021, 1:02 am
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Default Re: Moving old Pensions from UK to Australia

Not possible unless the receiving Aus fund is QROPS, which nowadays generally involves setting up your own SMSF.

https://www.canstar.com.au/superannu...ransfer-super/

https://www.unbiased.co.uk/life/pens...n-to-australia

Last edited by ianandhelena; Jun 22nd 2021 at 1:04 am.
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Old Jun 23rd 2021, 8:12 am
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Default Re: Moving old Pensions from UK to Australia

I dealt with these people from here in Melbourne. Very hard to find specialists in this field and it took at least 2 years to find someone as they have to have offices both in the UK and here in Australia.

I cashed in a trivial lump sum as it was under 30,000 GBP for my 8 years of working in the UK between the age of 17 and 25 during the 70's

So phone Jane Cooper, she did a great job for me, inasmuch as the Willis group in the UK said that it wasn't possible when I contacted them direct.

Details here. Let her know Eddie C recommended her.

There are a few non SMSF funds that you can utilise that are recognised by QROPS

If they can't do it no one can.

Beaware it's one hell of a convoluted journey.... worst red tape I've ever encountered anywhere for anything..... Makes buying a house or migrating look like childs play.


Jane Cooper

AIPA, ATT CTA (UK & Australia) & DIP of Financial Planning

Principal - GM Tax



Member of the UK Chartered Institute of Taxation , the Taxation Institute of Australia, and the Institute of Public Accountants.



3/267 St Georges Terrace, Perth, WA 6000, Australia - T +61 (0)8 9261 7762; M +61 (0)434 977 842

Postal address: PO Box 2351, Ocean Keys, Clarkson, WA6030, Australia

Last edited by ozzieeagle; Jun 23rd 2021 at 8:19 am.
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Old Jun 23rd 2021, 2:56 pm
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Default Re: Moving old Pensions from UK to Australia

Quick question, is it not worth leaving pension pots in the UK and withdrawing the funds when you turn 55?

I'm genuinely interested as I have about £40k in a L&G work pension I just thought it easier to leave it in the UK
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Old Jun 29th 2021, 11:27 am
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Default Re: Moving old Pensions from UK to Australia

Thank you everyone for your help so far. I have $400000.00 stuck over there. My concern is if I die 5 years into retirement my kids wont get all my money back

Last edited by kakadu chris; Jun 29th 2021 at 11:29 am.
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Old Jul 26th 2021, 6:52 am
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Default Re: Moving old Pensions from UK to Australia

<My concern is if I die 5 years into retirement my kids wont get all my money back>

I'm not a professional, but it is my clear understanding that:

Money in a UK pension pot (eg SIPP or Personal Plan) is usually* held in Trust. Which means that if you die then the whole amount goes to the Nominated Beneficiaries eg your wife and kids. And is tax-free (ie outside IHT) too, if you die before 75. After that is seems that the Beneficiaries are stuck with 40% tax.

NOTE
  • * When I say "usually", it is worth checking with your pot-holder that this is the case with your particular fund. And fill in their Nominated Beneficiaries form. However even in its absence the pot-holder "should" try to find likely beneficiaries (up to a point).
  • This outcome is within the UK tax regime. If your Beneficiaries are expats too, they may be stung, not by HMRC, but as 'receivers of unearned foreign income' in their resident country. (Most of the advice I have obtained on this has been contradictory. Especially as tax advisers seldom have sufficient knowledge of two countries tax systems.)
  • For reference, I obtained this information from Aviva (several different Personal Plans there), and Hargreaves Lansdowne (SIPPS)
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Old Jul 26th 2021, 11:36 am
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Default Re: Moving old Pensions from UK to Australia

hi thanks for the info
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Old Aug 1st 2021, 1:07 am
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Default Re: Moving old Pensions from UK to Australia

Originally Posted by tavro View Post
<My concern is if I die 5 years into retirement my kids wont get all my money back>


This outcome is within the UK tax regime. If your Beneficiaries are expats too, they may be stung, not by HMRC, but as 'receivers of unearned foreign income' in their resident country. (Most of the advice I have obtained on this has been contradictory. Especially as tax advisers seldom have sufficient knowledge of two countries tax systems.)
If you draw a UK pension in Oz then you have to submit a form to the UK tax office declaring that you are Oz resident and then the dual taxation legislation cuts in and so you will not be subject to UK tax but you will be subject to Oz tax. I have to declare my UK pension to ATO and it's added to my taxable income, but as my taxable income is below the personnel limit I don't pay any tax on it.

If you die and your dependents are resident in Oz I would assume that any benefit would be added to their taxable income for the year in question.

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Old Aug 1st 2021, 8:42 am
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Default Re: Moving old Pensions from UK to Australia

Treatment of your tax depends to a very large extent on your status - ie whether Temporary Resident, Permanent Resident or Citizen (dual or otherwise! )

While you remain a Temporary Resident of Oz, all your UK income (eg pension) is still taxed in UK, by HMRC. Only your OZ income (eg bank interest, earnings, etc) is taxable in Oz (by the ATO). Unless you are below a threshold. See www.ato.gov.au/Calculators-and-tools/Do-I-need-to-lodge-a-tax-return/

When your PR arrives, all your UK assets flip like a see-saw and become Australian assets, and henceforth are taxed under the ATO. Be warned therefore that tax-free UK ISA's suddenly become a taxable asset in Oz - any gains no longer tax-free of course! (There is no Oz equivalent to an ISA.)

Similar complications arise if you have UK SIPP (which like UK ISA's are in its own tax-free UK bubble). Any 25% tax-free drawings and even regular drawdowns from your UK SIPP, would be therefore taxed as 'foreign income of a Oz resident' and taxed by the ATO.

Disclaimer, I have simplified greatly - if any of this rings bells for you, do take professional advice!




Last edited by tavro; Aug 1st 2021 at 8:45 am.
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Old Aug 6th 2021, 2:33 am
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Default Re: Moving old Pensions from UK to Australia

I used a company called BDH Sterling, who have offices in Australia (Perth included) as well as the UK. They did all the leg work to
set up the SIPP in the UK to enable us to transfer money out of our company pensions, set up a QROP's approved SMSF in Australia,
and then assisted in the transfer and investment strategy. We still have full control of the investments and $$$. We are running a SIPP
in the UK still due to the Australian government limit on non concessionary contributions (was $100K per annum or $300K for 3 years
in advance permissible, not sure if the $ amount has changed under covid rules)

They were recommended to me by long term friends who are Brit expats living in Sydney

Cheers

Jim

Last edited by russellclan; Aug 6th 2021 at 2:35 am.
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