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Works pension... What to do ?

Works pension... What to do ?

Old Oct 6th 2002, 7:30 am
  #1  
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Default Works pension... What to do ?

Hi there,

We both have works pensions in the UK, mine's frozen since Jan 1999 and my hubby's got two, one's frozen and one that he pays into now.
My questions are do we leave them where they are and collect on them when we retire or get them transferred to Australia (if that's possible) We've heard you pay a lot of tax if you transfer them when we retire ?

Thanks

Julie & Darren
Adelaide by early 2003
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Old Oct 6th 2002, 10:01 am
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Default Re: Works pension... What to do ?

Originally posted by Juls:
Hi there,

We both have works pensions in the UK, mine's frozen since Jan 1999 and my hubby's got two, one's frozen and one that he pays into now.
My questions are do we leave them where they are and collect on them when we retire or get them transferred to Australia (if that's possible) We've heard you pay a lot of tax if you transfer them when we retire ?

Thanks

Julie & Darren
Adelaide by early 2003
I'm not sure, but my understanding is you can leave your private/work pension here or transfer it. Not sure about the tax thing though. I've heard also that you lose your government pension, not that it will amount to much...
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Old Oct 6th 2002, 1:34 pm
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Default Re: Works pension... What to do ?

Depends if they are final salary or money purchase schemes or not.
If they are final salary then alledgedly you are meant to leave them where
they are, however if they are money purchase then the converse may be true.
Perhaps you may decide to either/and contact a financial advisor and the
aussie tax office (http://www.ato.gov.au/).
Jez.

"Juls" wrote in message
news:[email protected]
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...
    > Hi there,
    > We both have works pensions in the UK, mine's frozen since Jan 1999 and
    > my hubby's got two, one's frozen and one that he pays into now.
    > My questions are do we leave them where they are and collect on them
    > when we retire or get them transferred to Australia (if that's possible)
    > We've heard you pay a lot of tax if you transfer them when we retire ?
    > Thanks
    > Julie & Darren
    > Adelaide by early 2003
    > --
    > Posted via http://britishexpats.com
 
Old Oct 6th 2002, 9:43 pm
  #4  
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Default Re: Works pension... What to do ?

Get professional advice. This kind of question is way beyond the
scope of a newsgroup to answer.

Jeremy


    >On Sun, 06 Oct 2002 07:30:55 +0000, Juls wrote:
    >Hi there,
    >We both have works pensions in the UK, mine's frozen since Jan 1999 and
    >my hubby's got two, one's frozen and one that he pays into now.
    >My questions are do we leave them where they are and collect on them
    >when we retire or get them transferred to Australia (if that's possible)
    >We've heard you pay a lot of tax if you transfer them when we retire ?
    >Thanks
    >Julie & Darren
    >Adelaide by early 2003
    >--
    >Posted via http://britishexpats.com
 
Old Oct 7th 2002, 7:06 am
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Default Re: Works pension... What to do ?

Originally posted by Jaj:
Get professional advice. This kind of question is way beyond the
scope of a newsgroup to answer.

Jeremy


    >On Sun, 06 Oct 2002 07:30:55 +0000, Juls wrote:
    >Hi there,
    >We both have works pensions in the UK, mine's frozen since Jan 1999 and
    >my hubby's got two, one's frozen and one that he pays into now.
    >My questions are do we leave them where they are and collect on them
    >when we retire or get them transferred to Australia (if that's possible)
    >We've heard you pay a lot of tax if you transfer them when we retire ?

Hi Jeremy,

Yes we are going to get professional advise just wanted to get a bit of feed back first.

Cheers
Julie & Darren
Adelaide by early 2003


    >Thanks
    >Julie & Darren
    >Adelaide by early 2003
    >--
    >Posted via http://britishexpats.com
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Old Oct 7th 2002, 1:13 pm
  #6  
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Default Re: Works pension... What to do ?

By all means feel free to share whatever advice you get on the
newsgroup and some of us (especially Alan) might have a view on how
good quality or otherwise it is.

Jeremy

    >On Mon, 07 Oct 2002 07:06:44 +0000, Juls wrote:
    >> Hi Jeremy,
    >> Yes we are going to get professional advise just wanted to get a bit
    >> of feed back first.
    >> Cheers
    >> Julie & Darren
    >> Adelaide by early 2003
    >> >Thanks
    >> >Julie & Darren
    >> >Adelaide by early 2003
    >> >--
    >> >Posted via http://briti-
    >> >shexpats.com/http://britishexpats.com

    >--
    >Posted via http://britishexpats.com
 
Old Oct 8th 2002, 7:03 am
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Default Re: Works pension... What to do ?

Originally posted by Juls:
Hi there,

We both have works pensions in the UK, mine's frozen since Jan 1999 and my hubby's got two, one's frozen and one that he pays into now.
My questions are do we leave them where they are and collect on them when we retire or get them transferred to Australia (if that's possible) We've heard you pay a lot of tax if you transfer them when we retire ?

Thanks

Julie & Darren
Adelaide by early 2003

You are given a set time to transfer to an Australian super , after that any interest on pension will taxed as income and will be back dated to when you transfer or draw private pension from UK.
The best bet leave it in UK and get it paid into bank account in UK when you start to draw on it in retirement , that way it will not attract tax here also not count against you getting some pension here , its a case of they cannot tax what they do not know about.The amount paid into UK account could be drawn by credit card so these clowns would not be able to trace it.

Last edited by pommie bastard; Oct 8th 2002 at 7:19 am.
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Old Oct 8th 2002, 7:30 am
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Default Re: Works pension... What to do ?

I'm no pensions expert but I know enough to tell you that much of the 'advice' you have received on this forum so far is ill-informed i.e. plain wrong.

See an independent advisor. And when I say 'independent' I mean one who makes no commission from selling you something.

However, you may want to look at this page from the ATO.
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Old Oct 8th 2002, 7:48 am
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Default Re: Works pension... What to do ?

[QUOTE]Originally posted by etlniwd:
I'm no pensions expert but I know enough to tell you that much of the 'advice' you have received on this forum so far is ill-informed i.e. plain wrong.

See an independent advisor. And when I say 'independent' I mean one who makes no commission from selling you something.

However, you may want to look at this page from the ATO.
[/QUOTE

Totally agree with Nick and Jeremy on this one, as I said to you when we spoke (Juls & Daz) its not that simple.
We have taken profesional advice ( non commision ) and feel a lot more aware than we did and in our case it would have been a mistake to leave NHS and company pensions here.

Paul
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Old Oct 8th 2002, 8:37 am
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Default Re: Works pension... What to do ?

Except that the UK authorities WOULD know about the existence of the pension because they would be advised by the pension fund administrators, who in turn would either advise the Aussie authorities (if they were aware of your Aussie address) or would tax it under the UK PAYE system.

If you know (or believe) you are going to be in Oz at retirement you can look at a tax free lump sum and/or tax free income at age 55 if you transfer the fund ... now THAT is the best bet, not your illegal tax evasion nonsense.

Best regards.



Originally posted by pommie bastard:



You are given a set time to transfer to an Australian super , after that any interest on pension will taxed as income and will be back dated to when you transfer or draw private pension from UK.
The best bet leave it in UK and get it paid into bank account in UK when you start to draw on it in retirement , that way it will not attract tax here also not count against you getting some pension here , its a case of they cannot tax what they do not know about.The amount paid into UK account could be drawn by credit card so these clowns would not be able to trace it.
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Old Oct 8th 2002, 9:27 am
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Default Re: Works pension... What to do ?

Originally posted by Alan Collett:
Except that the UK authorities WOULD know about the existence of the pension because they would be advised by the pension fund administrators, who in turn would either advise the Aussie authorities (if they were aware of your Aussie address) or would tax it under the UK PAYE system.

If you know (or believe) you are going to be in Oz at retirement you can look at a tax free lump sum and/or tax free income at age 55 if you transfer the fund ... now THAT is the best bet, not your illegal tax evasion nonsense.

Best regards.



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Old Oct 8th 2002, 9:30 am
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Default Re: Works pension... What to do ?

Just to add to what Alan Collett has said, pommie bastard’s advice relates to personal pensions, whereas Juls’s original query quite explicitly relates to works pensions, where different considerations apply. It is possible that pommie bastard doesn’t understand the difference, and is not aware of the different treatment which each attracts in Australia, but this just underlines the need for Juls to speak to somebody who knows what he is talking about.
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Old Oct 8th 2002, 11:52 pm
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Default Re: Works pension... What to do ?

Originally posted by Alan Collett:
Except that the UK authorities WOULD know about the existence of the pension because they would be advised by the pension fund administrators, who in turn would either advise the Aussie authorities (if they were aware of your Aussie address) or would tax it under the UK PAYE system.

If you know (or believe) you are going to be in Oz at retirement you can look at a tax free lump sum and/or tax free income at age 55 if you transfer the fund ... now THAT is the best bet, not your illegal tax evasion nonsense.

Best regards.



Get real why would UK tax talk to Aussie tax , look at the fact Aussie state pensions are means tested so if you have too many pensions you will get no state pension ,not the same in UK and not living in UK will mean no tax on it.
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Old Oct 9th 2002, 1:35 am
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Default Re: Works pension... What to do ?

Because there is a specific Inland Revenue form that has to be completed and stamped by the ATO if you want the UK Inland Revenue to stop deducting PAYE tax on your pension under the Tax Treaty between the two countries.

And if you don't believe me here is the link to the form in question:
http://www.inlandrevenue.gov.uk/cnr/form_aust.htm

Now YOU get real.



Originally posted by pommie bastard:


Get real why would UK tax talk to Aussie tax , look at the fact Aussie state pensions are means tested so if you have too many pensions you will get no state pension ,not the same in UK and not living in UK will mean no tax on it.
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Old Oct 9th 2002, 1:51 am
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Default Re: Works pension... What to do ?

Originally posted by Alan Collett:
Because there is a specific Inland Revenue form that has to be completed and stamped by the ATO if you want the UK Inland Revenue to stop deducting PAYE tax on your pension under the Tax Treaty between the two countries.

And if you don't believe me here is the link to the form in question:
http://www.inlandrevenue.gov.uk/cnr/form_aust.htm

Now YOU get real.



You are talking about the private pensions in UK , no state pension is taxed. The amount you get tax free in UK on private pension makes it worth while not saying anything , also upto 3 times last average wage in best of last 3 years can be drawn out of private pension tax free in UK.
Australia wants all pensioners to be self funded ie no state pension so anyway to hide cash from the state is worth a try ask Mr Packer how much tax did he pay last year?
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