Looking to move a UK Pension to Australia
In 2006, the UK government established a regime where it is possible to transfer funds out of UK pension schemes and into what is known as a Qualifying Recognised Overseas Pension Scheme (Q.R.O.P.S.). To make a compliant transfer of a UK pension and avoid a potential tax penalty of 55% on the total transfer value, the funds needed to be transferred to a fund on the QROPS list.
On 1 July 2015, the HMRC ROPS list replaced the HRMC QROPS list and changes were introduced to UK pension transfer regulations as part of the Freedom and Choice in Pensions legislative changes.
At this time, fund eligibility requirements were also changed which led to many funds, both in Australia and globally – to be removed from the list.
Set your financial future through your pension
The result is that there is now only one retail fund in Australia which is on the ROPS list and this is the Australian Expatriate Superannuation Fund (AESF). This fund is operated by IVCM. Rather than using an established fund, you can elect to set up your own self-managed superannuation fund (SMSF), which can be registered with the HMRC for ROPS purposes.
Knowing what type of fund you can transfer to is the easy part … the challenging part is knowing both the UK pension rules and the Australian superannuation rules and being able to navigate these rules to effect the transfer of UK pension entitlements without falling foul of the HMRC’s strict regulatory regime in the UK and the Australian superannuation rules.
Our team of professional advisers at Majenda Australia Pty Ltd and partner firms have the necessary expertise in pension advice and international tax advice.
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Contact our friendly team for more information regarding our services and the best way that we can assist you.