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UK pension transfer

UK pension transfer

Old Aug 14th 2020, 2:44 am
  #31  
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Default Re: UK pension transfer

I am well aware of that, that’s the bet you make. Lose some of it if you die or half of it if your spouse lives on. Alternatively give away 30% over five years to an advisor and the ATO and hope you have enough left to last if you don’t die.
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Old Aug 14th 2020, 2:48 am
  #32  
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Default Re: UK pension transfer

Originally Posted by Perthscot
I am well aware of that, that’s the bet you make. Lose some of it if you die or half of it if your spouse lives on. Alternatively give away 30% over five years to an advisor and the ATO and hope you have enough left to last if you don’t die.
I'm not sure about those numbers, but I don't have visibility of what has been presented to you.

I anticipate that you know your 25% lump sum and income stream are likely to have tax consequences in Australia.

Best regards.
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Old Aug 14th 2020, 2:54 am
  #33  
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Default Re: UK pension transfer

Originally Posted by Alan Collett
I'm not sure about those numbers, but I don't have visibility of what has been presented to you.

I anticipate that you know your 25% lump sum and income stream are likely to have tax consequences in Australia.

Best regards.
you may not be sure Alan but I am, I have had lengthy discussions with four different “experts” and the costs range from 27% to 30%. I am aware of the small tax implications I shall incur.
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Old Aug 14th 2020, 2:57 am
  #34  
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Default Re: UK pension transfer

Originally Posted by Perthscot
you may not be sure Alan but I am, I have had lengthy discussions with four different “experts” and the costs range from 27% to 30%. I am aware of the small tax implications I shall incur.
That's fair enough.

If you're comfortable and have done your due diligence there's nothing more I can usefully add.

Best regards.
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Old Aug 14th 2020, 5:23 am
  #35  
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Default Re: UK pension transfer

Originally Posted by Perthscot
Thanks for your reply, I have spoken to a few “financial advisors” and have decided to leave my DB pension in the UK, take 25% initially and monthly payments for the rest of my life. In my situation I would need to have set up an SMSF, kept it going for at least five years with QROPS approval, engaged advisor for this length of time, paid 15% to ATO, etc. cut a long story short, it would have represented a “loss” of approx 30% of my pension pot in fees and taxes.
i concur with your comments on financial advisors but I can assure you the current rules are not easy to comply with by doing it yourself.
That's the problem with pension pies - because many are very large, there are too many f**kers trying to stick their fingers in to try and get a plum. The fees charges by super/pension funds are bad enough without all the other 'experts' and 'advisors' trying to get a bit

You need to have eyes in the back of your head
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Old Aug 14th 2020, 5:38 am
  #36  
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Default Re: UK pension transfer

Originally Posted by Amazulu
That's the problem with pension pies - because many are very large, there are too many f**kers trying to stick their fingers in to try and get a plum. The fees charges by super/pension funds are bad enough without all the other 'experts' and 'advisors' trying to get a bit

You need to have eyes in the back of your head
Respectfully, that's a tad harsh.

There are many who think they are well informed who disparage professional advice and for whom a little knowledge is a dangerous thing.

You may contend I have a vested interest, but I've encountered many who don't understand what they are doing - even though they believe they do.

Sweeping generalisations as to the merits of paying professionals aren't helpful..

Onwards!
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Old Aug 14th 2020, 6:09 am
  #37  
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Default Re: UK pension transfer

Originally Posted by Alan Collett
That's fair enough.

If you're comfortable and have done your due diligence there's nothing more I can usefully add.

Best regards.
thanks Alan, perhaps you can help, can you advise how I prevent HMRC from taking tax from the 25% lump sum to allow me to declare it to the ATO and pay the tax here . I have a form here but would like confirmation.
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Old Aug 14th 2020, 6:16 am
  #38  
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Default Re: UK pension transfer

Originally Posted by Perthscot
thanks Alan, perhaps you can help, can you advise how I prevent HMRC from taking tax from the 25% lump sum to allow me to declare it to the ATO and pay the tax here . I have a form here but would like confirmation.
You may need to seek a NT (No Tax) PAYE Coding under the Tax Treaty provisions.

However. ... what has the UK pension fund administrator said about deducting tax from the 25% lump sum? Are they going to deduct anything?

Feel able to send an email to me (click on my name to the left of this post) if you'd prefer to discuss this off forum.

Best regards.

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Old Aug 14th 2020, 6:55 am
  #39  
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Default Re: UK pension transfer

Originally Posted by Alan Collett
Respectfully, that's a tad harsh.

There are many who think they are well informed who disparage professional advice and for whom a little knowledge is a dangerous thing.

You may contend I have a vested interest, but I've encountered many who don't understand what they are doing - even though they believe they do.

Sweeping generalisations as to the merits of paying professionals aren't helpful..

Onwards!
Respectfully, no it's not

I was not referring to any specific individual in what I wrote - and certainly not you! The financial advice industry is riddled with vested interests and of course there are genuinely honest and decent companies and individuals, it's just that they are in the minority

Sweeping generalisations as to the merits of paying professionals are perfectly acceptable - as they are for all other professions - especially on an internet forum, aka entertainment

I stand by what I posted



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Old Aug 14th 2020, 12:59 pm
  #40  
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Default Re: UK pension transfer

Originally Posted by Alan Collett
You may need to seek a NT (No Tax) PAYE Coding under the Tax Treaty provisions.

However. ... what has the UK pension fund administrator said about deducting tax from the 25% lump sum? Are they going to deduct anything?

Feel able to send an email to me (click on my name to the left of this post) if you'd prefer to discuss this off forum.

Best regards.
Alan, I think I might have confused myself! Pension provider said nothing yet. Am I correct in saying I won’t pay any Uk tax on the 25% initial lump sum but ATO declaration and add to any income. For the monthly / annual payment, as it’s under the 12.5K GBP threshold, no tax to Uk but declare if over 20K allowance to ATO.
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Old Aug 14th 2020, 1:06 pm
  #41  
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Default Re: UK pension transfer

Originally Posted by Amazulu
Respectfully, no it's not

I was not referring to any specific individual in what I wrote - and certainly not you! The financial advice industry is riddled with vested interests and of course there are genuinely honest and decent companies and individuals, it's just that they are in the minority

Sweeping generalisations as to the merits of paying professionals are perfectly acceptable - as they are for all other professions - especially on an internet forum, aka entertainment

I stand by what I posted
if you had expressed it that way in your previous post, that may have come across better. Not really looking for entertainment, just advice. Anyway agree with your overall sentiment.
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Old Aug 15th 2020, 5:52 am
  #42  
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Default Re: UK pension transfer

Originally Posted by Perthscot
if you had expressed it that way in your previous post, that may have come across better. Not really looking for entertainment, just advice. Anyway agree with your overall sentiment.
Entertaining advice then

Everyone's a winner
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Old Aug 15th 2020, 7:04 am
  #43  
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Default Re: UK pension transfer

Originally Posted by Perthscot
Alan, I think I might have confused myself! Pension provider said nothing yet. Am I correct in saying I won’t pay any Uk tax on the 25% initial lump sum but ATO declaration and add to any income. For the monthly / annual payment, as it’s under the 12.5K GBP threshold, no tax to Uk but declare if over 20K allowance to ATO.
I would have a conversation with your pension fund administrators regarding the 25% lump sum.

You need to ascertain the Applicable Fund Earnings component in the lump sum for Aus tax purposes.

There may be an UPP tax deduction in respect of the pension; if available this will reduce your taxable income in Australia.

Best regards.
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Old Dec 8th 2020, 4:21 pm
  #44  
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Question Re: UK pension transfer

Originally Posted by Perthscot
I too have decided to leave mine over there, not worth the costs involved.
Hi there,
I have a defined benefit scheme too, I am struggling to understand why I would transfer it to an Australian QROPS....seems like benefits are not being taxed on it in Aus (criteria apply), not being subject to currency rate fluctuations (which can to some extent be managed) and inheritance however seems like against that there's the cost of getting the advice from a UK FCA registered advisor (as its final salary) and whatever other costs are involved. I got a transfer value from my scheme a couple years ago and what I remember is, there are high penalties for transferring out! Plus the value of my pension is guaranteed here and the thing is, I will take my pension in 5 years so do not want to take any risks with its value!
Can you please tell me if I have missed something in terms of the pros and cons of this subject? The thing I am worried about is, in the past I had thought that if I don't transfer this pension over to Aus within 6 months of arrival, but then later want it transferred, I would be subject to really high ATO taxation...has something changed in the meantime please?
Any advice as you've been there before me would be gratefully welcomed and understand it is not financial advice from an advisor...many thanks.
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Old Dec 12th 2020, 10:14 pm
  #45  
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Default Re: UK pension transfer

Originally Posted by Gold_4
Hi there,
I have a defined benefit scheme too, I am struggling to understand why I would transfer it to an Australian QROPS....seems like benefits are not being taxed on it in Aus (criteria apply),.
I receive a pension from a UK company and it is subject to tax in Oz. I have to declare it as income on my Oz tax return.

However retires can earn approx $40,000 (tax free allowance) before paying any tax. My Oz Super is not taxable and so I don't have to include that on my taxable income.

So it depends on how much income your UK pension will pay you and how much income you will receive outside of Oz super once you retire, if it's below $40,000 you don't have a tax problem.
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