bingobob777

I have a couple of AVC pensions in the UK, not amounting to anything likely to be worthwhile in 30 years. That being the case, can anyone advise if I transfer them to my Super Fund can they then be returned as cash with the super paid via my job here when I return to UK at the end of my 457?

KJCherokee

Some years ago I had my UK pension entitlement cashed out and transferred to my Australian super fund, so yes it can be done. Don't know about going the other way at the end of your visa.

quoll

You can get pensions back if you leave from a 457 but they may whack you tax on it so you probably want to get that checked out. You certainly have to pay the full rate of tax for any contributions you have made while in Aus when you redeem it.

Rambi

I think what you propose would fall foul of the UK's QROPS rules.

Bix

I was thinking that.

Can you transfer whilst on a temp visa?
I thought you had to be leaving the UK permanently?

I'm pretty sure the 6 months free of tax rule in Aus only kicks in when you obtain permanent residency.

Scotty1

Don't think so - if it is transferred into a QROPS fund, you can't then make a withdrawal before retirement or you pay a large amount of tax, and if your fund is not QROPS you cant transfer it - without paying a large amount of tax.
However may be worth a phone call to a pensions person

Andrew Williams

You would indeed likely fall foul of the UK rulings.

If you access UK pension monies within 5 years of being a UK tax resident and that access does not fall in line with the UK regulations i.e drawn no earlier than at allowable retirement age and a maximum of a 25% lump sum (unless there is over 20k in annual payments from other pensions in place) then it is classed as an unauthorised payment and HMRC will penalise for between 40% - 55% of the payment.


Temporary residens can transfer UK Pensions but it is very unwise to do so due to the HMRC rulings and recent Australian legislation changes.

Regards


Andy