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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 View Post
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 View Post
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 View Post
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 View Post
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 View Post
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 View Post
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 View Post
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 View Post
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 View Post
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 View Post
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 View Post
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 View Post
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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