UK Pension - Self Managed Super & Tax on growth
 

Hi, hopefully someone can answer this for me.
We Left the UK 12 years ago & left our Pensions over there, I can theoretically draw on mine next year (age 55)
I know we cannot simply transfer them to our Aussie Super due to the QROPS issues but it may be worth setting up a self managed super fund here to allow transfers.
Has anyone done this & if so was it fairly simple to do and cost effective.
Also because we didn't transfer within 6 months there will be tax to pay on the growth of the funds.
Can anyone tell me where i can find out how this tax is calculated & is it relative to the exchange rate at the time as well as the current exchange rate.

eg.
2008 fund value 10,000 GBP exchange rate 2.5 = $25000
2018 fund value 15,000 GBP exchange rate 1.9 = $28500

Growth = $3500 @ 25% = Tax $875

Regards & Thanks in Advance Howzat

Re: UK Pension - Self Managed Super & Tax on growth
 

Unfortunately the ATO considers that applicable fund earnings are no longer to be calculated this way.

Using your example the taxable amount would be £5k x 1.9, or A$9,500.

This might be taxable in the hands of the receiving super fund if the whole of the UK fund is being transferred.

If not treated as income of the super fund it will be added to your personal income and taxed at your applicable marginal rate of income tax.

Best regards.

Re: UK Pension - Self Managed Super & Tax on growth
 

Have a read of this thread
https://britishexpats.com/forum/aust...-915860/page3/

The actual cost of transferring a fund valued at $A28,000 into a SMSF would be enormous. SMSF are a gold mine for the organizers unless you have millions so my advise is leave it in the UK.
I contributed to a company pension from 1980-90 which I left in the UK and am now retired it generates approx $A12,000/ year which is taxable but because my taxable income is below my tax threshold I don't pay any tax. My Aus Super is tax free and is not liable for Oz tax.

Re: UK Pension - Self Managed Super & Tax on growth
 

Thanks Guys, good info. for me to think about.

Re: UK Pension - Self Managed Super & Tax on growth
 

If you meet all the criteria a Trivial Commutation might suit you.

Re: UK Pension - Self Managed Super & Tax on growth
 

Thanks for the replies, the figures i used were for example only, the actual amounts are quite substantial but i dont think a forum is the best place for divulging personal details. I think i need to seek professional advice - has anyone any personal recommendations?

Re: UK Pension - Self Managed Super & Tax on growth
 

You are very welcome to contact me off forum via a Private Message.

Best regards.