ozzieeagle

I'll wait until I see what my advisors say in two weeks, but I think you'll find it's changed now to the QROPS approved funds that you can transfer too. That's because the HM government wants the assurance that any UK private pension money cannot be accessed before the age of 55. Australian superfunds generally speaking have a provision where you can access the funds before the age of 55 in case of hardship or illness which goes against UK pension principals.. I'm talking about the lumpsum payout transfers here. This legislation came into play in 2017. QROPS funds are guaranteed to have no payout in case of Illness or Hardship before the age of 55. They are mostly SMSF.

ianandhelena

The other relevant matter is "tax due on applicable fund earnings" between the date you became a tax resident here, and now. I'm in the middle of trying to sort that out with regards to my UK fund.

Kiwipaul

Are you talking about an investment fund or a pension fund, because as far as I know Pension Funds don't attract any tax liability until you start to withdraw them or transfer them.

But investment funds do especially PEP's or ISA's.

ozzieeagle

Hopefully your correct KP I'll find out on Oct 4th. If you are I'm 12K better off, less financial advisor fees. They may well advise me to take it as a Pension yet.

I've probably been confused by the 25pct tax-free lump sum payments they are talking about.

Just tried looking up the sites I'd been too before and couldn't find a mention of that 25pct tax. So fingers crossed.

The was definitely a major legislative change in 2017 which has had a direct impact on the way UK private pensions are now handled. Maybe I should have attended to this matter before that date, or maybe the sum has accrued since then. I've yet to find out.

ianandhelena

Pension fund.

Having looked into it a bit more today, I agree that seems to be the case. I think in my mind I'd misremembered the treatment of super transfers more than 6 months after arrival in Aus, and then assumed that that applied to funds left in the UK as well. Oh well.

What's the process for getting the UK pension provider to remit your regular payments free of UK tax? I saw you mentioned a form that needs to be sent off-where do I find that?

ianandhelena

Here's a bit about the 25% taxfree sum: https://www.gov.uk/tax-on-pension/tax-free

Kiwipaul

Ignore the email I sent because I've just found the location.

It's here
https://assets.publishing.service.go...-indiv2003.pdf

I seem to remember it takes about 3 months, you send it to Australian Tax office (not the UK one). In fact I think I've managed to att it to this message. Look for att.

ianandhelena

ozzieeagle

Had a couple of appointments for Financial retirement planners, not exactly enticed by what they are saying. I do know I can get my UK private pension through them at quite a low fee. It doesn't look I will have to pay a high rate of tax on it either. Not enjoying the way these advisers seem dead set driven to put us on a fixed annunity via their own "Top Quality best managed widely diversifed" schemes as their first response. Need to scratch harder. They keep telling me things I basically already know.

Lack of imagination out there. Maybe I can set up my own plan...... that's daunting!

This 300K each tax free downsizing fee you can put into super they happily tell you about, feels like a government rip off to me. Certainly fills up these private guys funds eh?

Beware the smiling planners methinks.

Bugga this.

Alan Collett

25% tax free in the UK.

Subject to an AFE calculation in Australia if received more than 6 months after becoming a tax resident.

Best regards.

Amazulu

You've got that right

Most of those pricks will soon part you from your hard earned

temptininnit

We are looking to transfer a NHS pension across, whats the current state of play on this? We missed the deadline in 2015 because they decided that our scheme didnt meet qrops after all.

Any links or advice?

ianandhelena

Either 1) start an SMSF and apply to HMRC to have it QROPS accredited and then transfer it, or 2) leave it in the UK, draw on it as a pension when you're eligible and transfer it across as taxable income.

ozzieeagle

Making progress with my retirement machinations now. Saw the people from First State Super, who handle my Wifes Super and coincidentally have taken on the advisory role for all Australia Post defined benefit employees.

They are almost certainly going to handle my UK private pension transfer for me.

I've had one glaring misunderstanding of this pension process on the Australian annuity side of things. I thought mistakenly that annuity payments were classed as income and they aren't much to my surprise, they actually go on top of the government pension. It's a bit complicated to put into words on here, but the Balance of your super is what affects the portion of Government pension you get paid, not the annuity payments from it. So you can receive up to 18K per year in income from your Super, without it affecting your income threshold or your Government pension. The only reason your Aus Government pension starts to decline above that the 18K mark is to do with the balance of your super and other assets besides your own home.


To cut a long story short I'm 50pct better off than I thought I was under that 18K mark...... 175 bucks per week for each of us so 350 bucks. Not sure if anyone else misunderstood this facet of the complex machinations of the superannuation combined with Government pension here or not. So today I'm feeling pretty good about things.

I beleive you can earn also circa 175 bucks per fortnight from paid employnment on top of those figures and still not lose a cent of Government Pension. ... So you getting up into the realms of 90K per couple if you both manage to do that.... take home.

ozzieeagle

Their Financial team will handle, It's supposed to end up as a lump sum in one of my bank accounts......hopefully... Stay tuned.