Craigv

Another pension thread.

I have two UK pensions one a current employer based pension and a very small one that I have from an old scheme I had with an ex employer.

I saw a post about new tax laws coming into place and find it all a bit confusing. In short do I leave them or bring them with me.

Thanks

thebears

Facing the same problem.

Have 2 large funds which I intend to leave in UK as they are final salary and have had excellent returns. Another 3 I will be taking with me but no rush because the IRD dont transfer my NI contributions into it until Oct/Nov 2006 for the tax year ending 5 April 06.

Consider the exchange rate and if you do transfer check the respective fund your employer is using or one you use will take the funds.

Ps We are leaving a majority of our house funds in the UK until the rate recovers above 2.6 - until this we will be self funding from the start.

joho

You know you will have to pay tax on the difference if its over 6 months after you move and the exchange rate hasnt gone above 2.42 since we brought our money out last May. When are you moving here. Also If you dont move your pensions within the first 6 months the UK gov will take 40% out of the transfer value.

JAJ

The 40% take from the UK may happen (under the new rules from 6 April) anyway, no 6 month concession for that, as far as I'm aware.

The *general* consensus on the forum seems to be that if it's an employer based final salary scheme the bias should be to leave it where it is (barring a good reason otherwise), while a private pension should usually be transferred.

But that's a very generic view and individual circumstances differ.

joho

Thanks for the correction JAJ, I was under the impression you had 6 months with pensions as well, but maybe that was for the Aussie chunck. We are frantically trying to organise my hubbys pensions as the deadline is so close. I had been told that as long as you were at a certain stage of the transfer they will not tax you if the money is not transfered intime. Could someone clarify if they know.

Jo

BAY

Sign onto www.gomatilda.com and read the write up Alan Collect has done on the new pension rules this Government are bringing in on 6th April 2006.

BAY

Sign onto www.gomatilda.com and read the write up Alan Collect has done on the new pension rules this Government are bringing in on 6th April 2006.

He's done a very good write up.

Bsically after 6th April it appears if you try to transfer pension money to Oz you'll be taxed at 40%, whatever scheme it is, because no Oz pension scheme are likely to register with the new English rules.

Yet another pension mess casused by this Labour government

andrew63

Jo
I started my transfer within a few weeks of ariving but it still took 9 months in total and due entirely to the slow responses from the UK Pension companies - particularly Prudential.
I was >90% through but still had to pay tax on the transfer as it exceeded 6 months through no fault of my own.

Andrew

joho

boll**x.

Jo

Bix

But they can be a lot, lot quicker