UK Military Pensions
#1
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Thread Starter
Joined: May 2003
Location: Lincolnshire, UK
Posts: 9
UK Military Pensions
I am considering emigrating to Australia in about 4 years when I have completed my career in the RAF. At this point, I will receive an immediate pension, although not a great deal of money, every little counts.
This pension is frozen until I reach 55. At this time, it will be subject to an increase to take into account any loss of real value (due to no index linking) over the previous 15 years or so. The pension will then become indexed linked.
Within this website, a number of people have discussed the UK State Pension and that its value is frozen when the recipient emigrates. This issue is currently being dealt with by the courts:
http://news.bbc.co.uk/1/hi/business/2882095.stm
I have a couple of questions regarding the UK Military Pension.
1. Is it also frozen for life?
2. Am I likely to pay tax in the UK and Australia?
Any information would be appreciated.
Regards
This pension is frozen until I reach 55. At this time, it will be subject to an increase to take into account any loss of real value (due to no index linking) over the previous 15 years or so. The pension will then become indexed linked.
Within this website, a number of people have discussed the UK State Pension and that its value is frozen when the recipient emigrates. This issue is currently being dealt with by the courts:
http://news.bbc.co.uk/1/hi/business/2882095.stm
I have a couple of questions regarding the UK Military Pension.
1. Is it also frozen for life?
2. Am I likely to pay tax in the UK and Australia?
Any information would be appreciated.
Regards
#2
Re: UK Military Pensions
Hi John
As I understand it, your Armed Forces Pension is not frozen if you emigrate. Seen in black and white in an Army Publication.
The Tax side I am not sure about, although you will have a UK tax allowance which should pretty well cover your pension anyway. Aussie side I don't know - but I'd plan on them taxing everything!
Us pongoes get a resettlement handbook, I should think you fellows do to - if not speak direct to RAF pensions.
Hope this helps
Nige
As I understand it, your Armed Forces Pension is not frozen if you emigrate. Seen in black and white in an Army Publication.
The Tax side I am not sure about, although you will have a UK tax allowance which should pretty well cover your pension anyway. Aussie side I don't know - but I'd plan on them taxing everything!
Us pongoes get a resettlement handbook, I should think you fellows do to - if not speak direct to RAF pensions.
Hope this helps
Nige
#3
Just Joined
Thread Starter
Joined: May 2003
Location: Lincolnshire, UK
Posts: 9
Nige,
This is certainly encouraging news and makes the thought of emigrating much more palatable.
Thanks,
John
This is certainly encouraging news and makes the thought of emigrating much more palatable.
Thanks,
John
#4
Account Closed
Joined: Jan 2003
Posts: 759
Re: UK Military Pensions
Originally posted by JohnD
I am considering emigrating to Australia in about 4 years when I have completed my career in the RAF. At this point, I will receive an immediate pension, although not a great deal of money, every little counts.
This pension is frozen until I reach 55. At this time, it will be subject to an increase to take into account any loss of real value (due to no index linking) over the previous 15 years or so. The pension will then become indexed linked.
Within this website, a number of people have discussed the UK State Pension and that its value is frozen when the recipient emigrates. This issue is currently being dealt with by the courts:
http://news.bbc.co.uk/1/hi/business/2882095.stm
I have a couple of questions regarding the UK Military Pension.
1. Is it also frozen for life?
2. Am I likely to pay tax in the UK and Australia?
Any information would be appreciated.
Regards
I am considering emigrating to Australia in about 4 years when I have completed my career in the RAF. At this point, I will receive an immediate pension, although not a great deal of money, every little counts.
This pension is frozen until I reach 55. At this time, it will be subject to an increase to take into account any loss of real value (due to no index linking) over the previous 15 years or so. The pension will then become indexed linked.
Within this website, a number of people have discussed the UK State Pension and that its value is frozen when the recipient emigrates. This issue is currently being dealt with by the courts:
http://news.bbc.co.uk/1/hi/business/2882095.stm
I have a couple of questions regarding the UK Military Pension.
1. Is it also frozen for life?
2. Am I likely to pay tax in the UK and Australia?
Any information would be appreciated.
Regards
My hubbie's in the Navy and comes out in 2005. He gets a gratuity and a pension which pays out immediately. (I think he can commute part of it and we will need to think about that.) It is index linked.
My understanding is that there is a double taxation agreement between Aus and the UK so that you will only get taxed in one country. I would imagine that what normally happens is that you get the pension paid gross from the UK into your Aus bank a/c and then have to declare it in your Aus tax return.
Nicola