Types Of UK Pension Funds That Can Be Transferred

The vast majority of UK pension funds can be transferred... More...

Transfer Tax

When you transfer UK pension funds to Australia as a lump sum, tax is only payable on the earnings of your UK pension funds whilst you are a resident of Australia... More...

Why Transfer?

If it is your intention to retire in Australia, there has never been a better time to transfer your UK pension funds as a lump sum... More...

Transfers Must Be Made To Certain Schemes In Australia

Since April 2006, all transfers of UK pension funds to Australia must be approved by Her Majesty’s Revenue and Customs (HMRC)... More...

No Out Of Pocket Cost

All costs associated with the transfer of your UK pension funds to Australia are deducted from the receiving Australian superannuation fund... More...

Timescales

We expect to complete transfers within 3 - 4 months from the date we receive your Letter Of Authority.

Types Of UK Pension Funds That Can Be Transferred

The vast majority of UK pension funds can be transferred to Australian superannuation as a lump sum, including personal, stakeholder, company and AVC’s funds, so long as they haven’t commenced in payment (i.e. you are not receiving an annual pension/annuity).

This also includes deferred, frozen or paid up benefits.

The UK state/age pension cannot be transferred to Australia as a lump sum. The benefits can only be received as a regular income at retirement age.

Transfer Tax

When you transfer UK pension funds to Australia as a lump sum, tax is only payable on the earnings of your UK pension funds whilst you are a resident of Australia. The tax rate can be capped at 15% and deducted by the receiving superannuation fund, meaning that you will not be taxed personally and will have no out-of-pocket expenses.

Example: You became a resident of Australia on 1st Jan 2000 and the transfer value of your UK pension fund at that time was £50,000. The fund when transferred to Australia was worth £55,000. The fund grew by £5,000 and would be taxed at 15% (i.e £5,000 x 15% = £750). Only £750 tax would be deducted by the receiving superannuation fund.

There are special exemptions to this tax for newly arrived residents of Australia and also for temporary visa holders.

Why Transfer?

If it is your intention to retire in Australia, there has never been a better time to transfer your UK pension funds as a lump sum.

Tax Free Income In Retirement

The Australian government introduced major changes to the Australian superannuation rules in July 2007, which makes the option of transferring UK pension funds much easier.

Why transfer?

• Consolidation of your retirement benefits within your country of residence. By transferring your UK pension funds to Australia all of your retirement benefits will be within the one country, and will be subject to only one set of pension and taxation rules.
• You can withdraw your benefits tax free on retirement from age 60. Generally speaking, benefits paid from an Australian superannuation fund, either as a lump sum or as income, will be tax free for retirees aged 60 and over. The tax free amount will include any UK pension benefits transferred to your Australian Superannuation fund. This represents a significant incentive to transfer given the benefits would be treated as taxable income on withdrawal if retained in the UK.
• There is no requirement to purchase an annuity. Your funds can remain in the super fund of your choice for as long as you choose. This allows for greater flexibility with your income, investment choices, and death benefits.
• Any benefits remaining on death can be passed to your nominated beneficiaries. This represents a significant advantage over the UK, where the rules dictate that the benefits are lost once any surviving spouse has passed away.
• Your retirement income will not be subject to exchange rate risks. If you were to draw your benefits from the UK, the amount received each payment would vary according to the value of the British Pound to the Australian dollar. This would make budgeting extremely difficult and place unnecessary risk on funding your retirement. By transferring to Australia, you will eliminate the currency risk associated with your benefits.

Transfers Must Be Made To Certain Schemes In Australia

Since April 2006, all transfers of UK pension funds to Australia must be approved by Her Majesty’s Revenue and Customs (HMRC) and be transferred to a Qualifying Recognised Overseas Pension Scheme (QROPS) in Australia. Failure to comply will result in a severe tax penalty of up to 55% deducted by the UK pension fund prior to the benefits being transferred to Australia.

A QROPS is basically an overseas superannuation fund that has been registered and approved by the HMRC to receive pension monies from the UK without penalty.

Global Destiny has successfully negotiated with a number of established Australia QROPS to provide benefits such as: commercial rates of exchange to maximize the amount you receive; cleared funds on the same day your funds have been transferred to Australia; no exit penalties (after a compulsory three month period); and a dedicated administration team to ensure your transfer is successful.

Global Destiny will recommend a suitable specialist QROPS to receive your benefits as part of the FREE UK pension fund transfer report.

No Out Of Pocket Cost

All costs associated with the transfer of your UK pension funds to Australia are deducted from the receiving Australian superannuation fund, so that you will not incur any out-of-pocket expenses.

Timescales

We expect to complete transfers within 3 - 4 months from the date we receive your Letter Of Authority.