jimjon

Hello fellow Brits
I am due to receive an early pension payout lump sum and ongoing pension due to illness from my old UK pension funds... I am an Australian Citizen for a long time.

I am totally clueless as to how to best get the money transferred over to Australia both the lump sum and the ongoing payment...and how or what to do or expect when it comes to talking about tax.or whats involved.

Has anyone gone through this ...early pension release due to illness and how or what to do to make it work.

I currently also receive an onging Australian super payment due to illness.

Should I find a tax consultant ..?
What can I expect to pay tax...do I pay tax to both UK and in Australia ?
Any other pitfalls or potential issues ?

Cheers and thanks in advance.

ozzieeagle

I'm half way through a similar process now. I dont know whether mine will be successful or not, although the person handling my claim thinks and assures me it will be. One things for sure you will have to pay tax in both countries, capital gains here (39 years worth in my case) and not sure what they call the UK tax component but it's a 25 pct deduction.

I will let you know if I'm successful. I've been guaranteed my consultancy money back if it's not.

I'd rather hold off on recommending them or naming them until I know the end result which has to be by September. It's the successors to Allan Collett who has retired....but I'm not saying how to get in touch at this stage. I will say I've not sighted them face to face and the specialist concerned is in Perth, which I personally am finding a bit disconcerting. I'll be very happy to recommend if this works though.

I should know whether this cash grab in my case will be successful within the next 3 weeks.


Be back then.

jimjon

ozzieagle I have received lump sum and yearly payment options quotation from my fund so its approved ..Thought the lump sum portion is Tax free in the UK (PCLS) ..says so on my quotation.. For Australia didnt think it would be treated as capital gains ... rather taxable income worked out by how much the fund has increased since being in Australia..dont know for sure yet...have you thought about applying to the ATO to provide a private ruling to work out what tax is owed...thats what Im thinking of doing.

ozzieeagle

That is capital gains tax and mine is 39 years worth.

My application is totally lump sum under trivial payments ruling, being less than 30K GBP as it's only 7 years worth from 1973 to 1980. Thing is Willis may not release it on account of my Aus Super taking me way and beyond the 30K total pension savings figure..., although my advisor assures me they cant take the Aus Super into account. We'll see what happens. If Willis do and refuse to let a lump sum go, then I get my advisors fee back.

The initial release application is being scruitinsed in Norwich right now, with the formal application being forwarded as soon as I hear ney or yay. If it isn't approved then I'm on monthly payments as from March next year, which is a bug bear because of the Means test on the Aus Gov Pension V the small forever ongoing UK monthly payments. I'm trying to sort my affairs so that I come just under the means test threshold and it means shifting dosh around and this monthly UK payment thing really confuses the issue and leaves me liable to scrutiny from Centerlink and honestly I dont want scrutiny from Centerlink.

If my advisors are correct and have sent the forms off successfully then I will be recommending them highly on these boards. As they were the only people I could find to take this on.