UK Police pensions
 

anyone know if you have to pay tax on the lump sum from a police pension? It is tax free in UK. I know they have the pay in one country only rule now for the monthly pensions.

Re: UK Police pensions
 

Whether you pay tax on your lump sum depends on your age. Have sent you PM.

Re: UK Police pensions
 

Sorry to jump on this thread but this interests me. Ozhappy981, could you PM me too!
Thanks.

Re: UK Police pensions
 

If you retire and take your lump sum before you become tax resident in Oz, then its tax free. If you move to Oz become tax resident and then take it, you pay tax.
I have just taken some advice on my public sector pension on whether to leave it or transfer it and this is one of the issues to think about - along with currency fluctuations, security and a host of other things!

Scotty

Re: UK Police pensions
 

So how does it work.
At the point you retire from the Police "Service" in the UK, you receive your Police Pension.Are you suggesting that you have to physically be in Oz before the lump sum is paid and you start to recive your monthly pension payment or are you allowed a reasonable period to move over to keep the lump sum tax free in OZ.

Also what determines where you pay tax on the monthly pension payment-thought there was something about "Govt pensions" that means you have to pay the tax on your monthly pension in the UK regardless of where you move to.:confused:
Anyone who has been through this please post as it may well be an option for me sooner than expected due to injury and because of wifeys nursing qualifications we are already residents of Oz.Many thanks. Bill.

Re: UK Police pensions
 

This is a very individual issue and I can only tell you what I have been advised given my position. You would be well advised to take personal advice as mistakes can be costly.

If you retire in the uk while still a uk tax resident, and take annual pension and lump sum before moving to oz, you lump sum is tax free and your annual pension subject to uk income tax. When you move to oz your annual pension is then subject to oz income tax - they do not tax your lump sum. You do not pay income tax to both oz and uk and you should be able to get your pension paid from the uk without uk income tax deduction.

If you do not retire before you move to OZ, say you are too young to do so, keep your pension entitlement in the uk police and are in Oz when you retire with your lump sum and annual pension, your lump sum is subject to OZ tax, as is your annual pension as above.

Your final option is to transfer your pension entitlement to a qualifying scheme in Oz. When you retire your lump sum is not subject to Oz tax. However this option means giving up your final salary pension rights and if you are thinking about this you really need good advice.

hope this helps

scotty