Uk private pension and tax implications
Feb 10th 2023, 2:51 am
#1
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Joined: Feb 2023
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Uk private pension and tax implications
Good morning
my wife is now eligible to a uk private pension and a lump sum
her pension is worth £7000 and lump sum £20000
she is still working in Australia and can put all of her earnings in superannuation
We want to minimise any tax implications, can we claim the $18200 tax free threshold on our uk pension and a little Australian earnings?
Thank you for your time
my wife is now eligible to a uk private pension and a lump sum
her pension is worth £7000 and lump sum £20000
she is still working in Australia and can put all of her earnings in superannuation
We want to minimise any tax implications, can we claim the $18200 tax free threshold on our uk pension and a little Australian earnings?
Thank you for your time
Feb 13th 2023, 10:04 am
#2
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Joined: Jan 2003
Location: Brisbane
Posts: 1,571
Re: Uk private pension and tax implications
If you are eligible for SAPTO you can earn $32,279 totally tax free (not including any Australian sup you receive).
https://www.superguide.com.au/how-su...x-offset-sapto
Here is a calculator that works out your tax liability at various income levels
https://www.superguide.com.au/how-su...tax-calculator
Your lump sum of £20000 might push you over the limit unless you can take it in small bites.
https://www.superguide.com.au/how-su...x-offset-sapto
Here is a calculator that works out your tax liability at various income levels
https://www.superguide.com.au/how-su...tax-calculator
Your lump sum of £20000 might push you over the limit unless you can take it in small bites.
Feb 17th 2023, 8:43 am
#3
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Joined: Sep 2005
Posts: 1,164
Re: Uk private pension and tax implications
I had similar. You cannot claim any tax free allowance in Uk against ATO
the lump sum will be taxed as income. BUT only the growth since you arrived permanently in Australia. Get a valuation of the lump sum on that date from your pension provider.
The monthly payments are treated as untaxed income in Aus so you might be able to top up into your super at 15% tax unless you are already at the max limit. If your UK pension company deducts tax at source this will be taken into account but you can get them to pay untaxed by completing a form available online.
Im guessing this is a final salary pension and you can’t really alter it much.
the lump sum will be taxed as income. BUT only the growth since you arrived permanently in Australia. Get a valuation of the lump sum on that date from your pension provider.
The monthly payments are treated as untaxed income in Aus so you might be able to top up into your super at 15% tax unless you are already at the max limit. If your UK pension company deducts tax at source this will be taken into account but you can get them to pay untaxed by completing a form available online.
Im guessing this is a final salary pension and you can’t really alter it much.
Mar 5th 2023, 3:08 am
#4
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Joined: Feb 2023
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Re: Uk private pension and tax implications
Originally Posted by rammygirl
I had similar. You cannot claim any tax free allowance in Uk against ATO
the lump sum will be taxed as income. BUT only the growth since you arrived permanently in Australia. Get a valuation of the lump sum on that date from your pension provider.
The monthly payments are treated as untaxed income in Aus so you might be able to top up into your super at 15% tax unless you are already at the max limit. If your UK pension company deducts tax at source this will be taken into account but you can get them to pay untaxed by completing a form available online.
Im guessing this is a final salary pension and you can’t really alter it much.
the lump sum will be taxed as income. BUT only the growth since you arrived permanently in Australia. Get a valuation of the lump sum on that date from your pension provider.
The monthly payments are treated as untaxed income in Aus so you might be able to top up into your super at 15% tax unless you are already at the max limit. If your UK pension company deducts tax at source this will be taken into account but you can get them to pay untaxed by completing a form available online.
Im guessing this is a final salary pension and you can’t really alter it much.
