Weirdstone

Have I left it too late to transfer my NHS Pension, without incurring a heap of tax?
Been here for 4 and a half years.

22B

Well - there is a 6month window from first arrival when you can transfer without it becoming taxable.

So, 4-and-a-half years later, yes, it is taxable.........

........ but it is the fund's growth since your arrival that is taxable - and given the recent performances of global stockmarkets, it may well be the case that the growth isn't very much......

....... and what you lose in tax now, you may gain in the longer term because, with depressed share prices, you will be buying more units in your new Aussie scheme.....


Of course, what I've just written applies to a 'contributions scheme' (I know that's not the proper phrase - I mean it's not a defined benefits scheme) that you haven't started drawing yet..... if that's not the case, then I haven't a clue, mate

Geelong Gent

You are taxed on the growth but it can be payable out of the fund itself so need not worry about cashflow Caz.

I think whether you transfer it or not you would still need to be declaring the growth aspect? as it is currently a non qualifying OZ super fund.

Others may know more.

Bazza Boy

No, because unless the fund's investment strategist had a crystal ball 2 1/2 years ago, your Pension wouldn't have grown from when you arrived.

So there'll be no tax to pay currently.

I'm in the same boat, but still holding off transferring with the FX rate at present.

Big Baz

JimHennington

The NHS scheme is a 'final salary' scheme, so there isn't an actual fund value that goes up and down with the stockmarket.

To get a valuation, you need to request a "CETV". Basically the government actuary does a valuation of the guaranteed pension you're giving up and that's the amount you could transfer.

From my experience, NHS valuations have gone up quite a lot over the past few years as the government actuary changed the factors he uses. It's not linked to stock markets.

So: it sounds like there'd be some tax, but as Geelong Gent says, the tax is only on the growth (in GBP), and can usually be paid out of the transfer (at 15%) when it arrives. I assume you're of working age and the value is under A$450k.

Sorry if that sounds complex. I'm trying to hone my skills in putting this stuff into plain english!

One of your problems will be how to get a value backdated to when you arrived in Aus. Anyone else had that problem?

Jim Hennington

Weirdstone

Thanks Jim, much appreciated

JimHennington

I like the your photos on your link! Esp. the B&W ones.

Weirdstone

Thanks again ...my other job, and my love
sadly no pension in that though

tylerbabe

I have had a letter from uk tax office to stop having my state pension taxed. I have lived in Turkey 3 years now. I need to send it to tax authorities in Turkey. Has any one done this beore.

JimHennington

In the UK, if someone lives here and draws a state pension they deduct tax 'at source'. This means they deduct the tax before paying the pension out.

Turkey has a double taxation agreement with the UK. Normally this means that if someone becomes tax resident of the other country, they can apply to stop having this deducted.

The logic is that it's meant to be the country you're resident in that taxes your retirement income. If the UK deducted tax then you can normally claim that as a credit towards local (Turkish) tax payable. Have you been doing that?

The reason for the form from the UK tax office is probably because it is simpler if the UK doesn't do this and you just deal with it all in the local tax system.

The reason you need the Turkish tax authorities to sign the form is to give evidence to both parties that you'll have the pension taxed by Turkey, not the UK.

tylerbabe

Thanks Jim I will fill the form out and take it to our tax office get it signed and sit back and wait.

JimHennington

My pleasure.