UK to Australia Financial Advice

Considerable tax planning opportunities may exist if you transfer your UK pension scheme to a Qualifying Recognised Overseas Pension Schemes (QROPS) and exit the UK. These are enhanced if you decide to move to a country such as Australia. Residents of Australia benefit from being able to access their retirement schemes known locally as Superannuation or Super, as a lump sum, tax-free upon attaining the age of 60. For former residents of the UK, now living in Australia, once they have completed a qualifying period (mandated by UK’s Her Majesty’s Revenue & Customs and a requirement of any UK departee) they will then qualify for the Australian terms.

Please however note there is a maximum contribution limit on UK pension transfers to Australia. Should your overseas pension transfer balance exceed this limit then one option is to restructure your pension funds within the UK or via a non-Australian QROPS. Such an interim process allows for staged transfers into an Australian QROPS. Alternatively a non-Australian QROPS or a UK option may in certain circumstances offer more attractive opportunities. Indeed today many of our clients are now basing their pensions outside of both UK and Australia. This is due to prevailing tax advantages.

Your options are more varied than ever before offering a vast range of choice and advantages. You should most certainly seek expert opinion from a firm with years of experience in this field. Montfort have provided international pension transfer advice since 1995. We know of no other company with such pedigree.

Updated Information

Some UK pension funds or non-Australian QROPS retained outside of Australia have recently become more attractive following Australia’s abolition of its Foreign Investment Fund (FIF) tax regime, effective July 1, 2010. They allow benefits to be accessed sometimes in their entirety and often years before an Australia QROPS permits.

Please note Australian Section 305 tax still remains and applies if UK pension transfers occur after you have been tax resident in Australia for six months. However the legislation has tamed since the heady days of Section 27CAA in July 1994, offering as advised now many more opportunities and options.

Montfort will provide a full analysis of your pensions, considering all UK options as well as advising on beneficial non-UK and non-Australian and Australian options. We will of course work towards minimizing any tax liability position created by your move to Australia as well as advising you on where the tax advantages can be found.

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