There are considerable tax advantages in UK pension transfers to Australia, where funds can be accessed, as a lump sum, tax-free after age 60 - providing this is outside of the reporting period of the Qualifying Recognised Overseas Pension Scheme (QROPS) into which they must first be transferred.
There is now a maximum fund limit on UK pension transfers to Australia. This is known as the Contributions Cap. Should the overseas pension transfer funds exceed this cap, a restructuring of your pension funds within the UK and staged transfers to a QROPS in Australia might be required, thus retaining some funds in the UK temporarily.
Some pension funds retained in the UK might be subject to Foreign Investment Fund (FIF) tax. There may also be a liability to Section 27CAA tax if UK pension transfers occur after you have been in Australia for six months.
Montfort will provide a full analysis of your pensions, considering all UK options, and give Australian pension advice to mitigate your tax position. This is important where large pension funds are involved (particularly within final salary occupational schemes), and UK authorisation would be required.
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