From 6th April 2006, if an individual, migrating from the UK to Australia or New Zealand, has been suitably advised to transfer some or all of their UK pension funds, to either an Australian or New Zealand scheme, the transferred pension funds must be received by a QROPS.
In order to be approved as a QROPS, the Australian or New Zealand scheme would have to apply to the UK authorities (Her Majesty's Revenue and Customs) and agree to report any payments made to the member, to HMR&C, for 5 complete tax years of the member's overseas residency.
Any payments that are made by the QROPS to the member, in the form of income or lump sum, must be made in line with UK pension regulations or tax charges could occur for the member. Advice is required, pre-departure from the UK, to ensure the transfer process is followed correctly and that no tax charges occur.
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