Important changes to UK Pensions may impact your migration plans

On 6th April 2010 the age at which you are able to access retirement benefits from your occupational and personal pension schemes will change from age 50 (currently) to age 55.
The change will affect everyone who is due to reach the age of 50 prior to 6th April 2010 and those who are currently aged 50 but will not reach age 55 prior to 6th April 2010.
What Does This Mean For You?
If you fit this profile, you would not be able to access the pension commencement lump sum from your pension(s) until you reach age 55. If you had planned to review your pensions and access benefits prior to the age of 55, from 6th April 2010 you will not be able to do so. This may have a major impact on your upcoming migration, particularly if you were counting on using your pension commencement lump sum to finance your migration.
What Should You Do Now?
Whether you wish to access the benefits from your pension(s) in the near future or not, we recommend that you speak with a suitably qualified financial adviser to advise on your options in good time prior to 6th April 2010. It is also imperative that any advice takes into account your future migration.
How Else Can Montfort International Help You?
Australia and New Zealand have different tax systems to the UK. As a result any UK assets, investments, savings or pensions that a migrant may have could potentially be taxed “Down-under”. In addition to offering financial advice regarding pensions, Montfort International is able to offer assistance with helping obtain a visa for either Australia or New Zealand residency through our network of Registered Visa Agents.
For further information on how you can benefit from Montfort International’s years of experience of pension and QROPS advice, financial and tax advice and/or visa assistance, contact Nick Bond or Paul Lawson-Tyers on 01483 202072. Alternatively please visit our website www.miplc.co.uk.

Australian QROPS may cause problems for migrants

UK emigrants who have moved their superannuation to what they thought was a Qualifying Recognised Overseas Pension Scheme (QROPS) Australian superannuation scheme may have unwittingly made payments that contravened the UK rules and given their members a tax burden.
The UK HMRC (Her Majesty’s Revenue and Customs) recognize there will be teething problems in the initial stages of new regulation, but any honeymoon period could be short lived. HMRC expects schemes to own up and not wait to be found out if they have made unauthorised payments, as the UK Tax Compliance department is already onto it.
“Various Australian advisers are quite rightly telling people it’s possible to move their money into an Australian “complying fund” but the potential problems begin when they state that the member can elect for the scheme to pay any tax liabilities on growth post arrival. Some Australian pension schemes have inadvertently broken fundamental regulations.
Further instances have come to light where schemes have incorrectly advised that members can, after the first reportable lump sum, take out the lot. Rules appear to have been broken in many cases. Schemes and advisers need to take prompt advice to ensure they correct the situation as soon as possible. We are already acting as a go-between” reports Geraint Davies, Managing Director of UK financial advisory firm Montfort International plc.

Australia wants more immigrants

On 30th July 2008 Andrew Metcalfe, Secretary, Department of Immigration and Citizenship told the Australian Government Policy Evolution Conference at Canberra that in the last financial year (1/7/2007 – 30/6/2008) over 158,000 migrant visas were granted including 110,000 visas for temporary skilled work. Citizenship was granted to nearly 170,000 people.
His Department wants the migration program to supply skilled labour so that economic growth can continue within “a longer term framework for migration in the context of future labour market and demographic needs”.
The Migration Program for the current year (July 08- June 09) increases to 190,000 places, which makes it the largest program ever. The skilled migration component will make up 133,500 places, the largest ever and a 30 per cent increase on last year's program. The family stream will also grow by 6,500 places to total 56,500 places.
If your intention is to take advantage of the increasing number of opportunities to migrate to Australia, seek advice early from the qualified visa and financial experts at Montfort International http://www.miplc.co.uk/integrated_visa_financial_advice.html (info@miplc.co.uk, call 01483 202072 or freephone 0800 018 3571).

Montfort clients feature in Jewish Chronicle article

Montfort clients feature in Jewish Chronicle 18/04/2008 article Next year in...Sydney by Jan Shure with additional reporting by Dan Goldberg
“Pauline Nel and her husband, Louis have decided that Australia is where they want to make a new life with their son Jannie, four, and daughter, Mia, two. They are moving to Sydney later this year.
They first visited Australia just over a year ago for a holiday and to see whether it was somewhere we could live. We visited Sydney, Adelaide and Melbourne to get an overview of each city. Louis grew up with a very outdoors lifestyle. In addition I suppose we have always known that England is not the only place to live your life.
Nel, 35, a company director with a background in human resources, said the toughest aspect has been the immigration process, which she describes as “a very long, arduous process”. She hopes the settling in will be made easier by the fact that her brother is already in Sydney, and their parents are currently applying for visas to join them.
Apart from the outdoor life and the climate, it is the work-life balance which especially appeals to Nel. “Work is just one part of your life. When you are finished, you go home and spend time with your family or do other activities. Also, the facilities there are much more affordable — you can go out for the day without spending a fortune, and there are beaches, mountains, parks, public barbecues you can use.”
She is also pragmatic about the future: “I’m under no illusions of us being financially better off, but I do believe our quality of life will be richer.”
The Nels and her parents, the Kellys, are all clients of Montfort International plc which is providing both visa and financial advice serves to them all.

When is giving advice not giving advice?

Montfort International has learnt that the interests of emigrants from the UK are of increasing concern tothe UK’s consumer watch-dog, the Financial Services Authority (FSA).
The FSA regulates the UK’s financial services businesses and is now looking closely at the advice migrants and returning nationals are receiving. The financial consequences of migration are not just the concern of the migrant. The FSA is charged with ensuring that the advice you get is quality advice, which should be supplied by those competent in financial matters appropriate to UK and the destination country.
There are concerns over those foreign advisers who say they are not giving UK advice when physically standing in front of you at a migration show in this country. Migrants need advice about what to do about investments, pensions, wills and UK mortgages. The response they seem keen to supply is “leave it all until you arrive in Australia”. That seems to be giving advice. Most countries assess your situation based upon what you arrive with! How do you optimise your position? The answer is to see a UK regulated firm and ensure you leave with the right financial arrangements in place.
If the adviser is not FSA regulated then he or she is far less accountable. (One can easily check - http://www.fsa.gov.uk/register/home.do) If they are not registered, where do you stand if it goes wrong? Probably in not too enviable a position – unless you fancy mounting an international legal challenge with all the associated costs. International tax specialists, accountants and lawyers do not come cheap.
In the Inland Revenue’s adverts, Professor Simon Scharma claims “Tax doesn’t have to be taxing.” To ensure this is so for you requires sound, pre-departure preparation - not post arrival damage limitation.
For individual, expert advice from an FSA registered firm (No 181199) call Montfort International free on 0800 018 3571 or email info@miplc.co.uk

Financial pitfalls can entrap migrants

There can be significant tax and financial issues for those leaving UK, but the weak pound is already making things tougher for those going to Australia, so they really can’t afford to pay unnecessary tax. However, only a handful of financial advisers, such as market leader Montfort international plc know the key to tax-effective restructuring.
Many migrants and returning nationals are vulnerable and disorientated. Together with all the excitement there is also apprehension about life in that strange new country. Who doesn’t have concerns? Are you aware that the date you leave will alter your tax position and that the type of visa and its date of issue will affect your tax, as well as have a follow on effect on your purse?
Migrants need advice and it’s not just pensions, for which a Qualifying Recognised Overseas Pension Scheme (QROPS) is a great way to
• access the benefits tax-free as a lump sum
• receive the funds before retirement
• protect your benefits from UK inheritance tax
• avoid the requirement to purchase an annuity
How do you avoid tax on the cash from house proceeds? What do you do about your wills and UK mortgages? Raising a mortgage to release capital won’t necessarily be tax effective unless you consider a change of ownership, and the list goes on. Who would think a repayment on a mortgage can create tax consequences?
In the Inland Revenue’s adverts, Professor Simon Scharma claims “Tax doesn’t have to be taxing.” To ensure this is so for you requires sound, pre-departure preparation - not post arrival damage limitation. Contact the experts at Montfort now to arrange a free initial consultation by calling free on 0800 018 3571 or visiting www.mipolc.co.uk