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Andrew from Vista Financial

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Andrew from Vista Financial last won the day on January 20 2017

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About Andrew from Vista Financial

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    Financial (Pensions) Adviser

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  1. Andrew from Vista Financial

    The Brand New PIO Parents Visa thread

    Thanks so much for this Kate, really appreciate you saying that
  2. Andrew from Vista Financial

    The Brand New PIO Parents Visa thread

    Hi there That question on pensions is not a black and white answer as it will depend on a huge range of things mostly to do with your current position and future goals and objectives (predominantly around retirement). Just some background though, a UK pension cannot be transferred to an Australian QROPS Super Fund (since 2005) until a person reaches age 55. From that point it may be possible to transfer a pension (depending on the type) as some cannot be transferred (government defined benefit unfunded schemes) however whether it is the right thing to do or not is a different matter and if the balance is quite large then usually a straight transfer is not possible due to Australian contribution limits therefore phased/staggered transfers would be required. See here for a bit more info https://vistafs.com.au/main/page_uk_pensions_age_55.html. There may also be options for people under age 55 to consider around transferring their pension, again though this would need to analysed at an individual level but moving say to an SIPP could be a consideration given then the ability to invest in currency and funds that are Aus Dollar denominated. See more here https://vistafs.com.au/main/page_uk_pensions__age_55.html. Happy for you to reach out via PM or email ( andrew@vistafs.com.au ) to create initial contact and then possibly move to advice if necessary and at an appropriate time. Regards Andy
  3. Andrew from Vista Financial

    UK Pensions/QROPS 5 year+ rule to become 10 year+ rule

    Hi Acb This post was about transfers (rollovers) of UK pensions to Australian Super Funds and the HMRC rules surrounding this when accessing any of those transferred monies under the Qualifying Recognised Overseas Pensions (QROPS) regime. This does not relate to the NHS Pension payments or QSuper Fund. So essentially no implications to you in this regard. ATB Andy
  4. Andrew from Vista Financial

    Superannuation

    Yes I hadn't come across it for a while (pretty sure it is still current as have not heard to the contrary) but it certainly is interesting particularly if someone doesn't realise and makes additional contributions to super and is not looking at becoming a permanent resident.
  5. Andrew from Vista Financial

    Superannuation

    Hello What you are referring to is known as the Departing Australia Superannuation Payment (DASP) and yes unfortunately release does carry quite a tax burden: https://www.ato.gov.au/Individuals/International-tax-for-individuals/In-detail/Super/Super-information-for-temporary-residents-departing-Australia/ However I understand that from April 2009 temporary residents are not subject to the same conditions of release as permanent/citizens which means retirement is not classified as a condition of release: https://superoracle.firststatesuper.com.au/getting-money-out-of-super/temporary-residents-and-conditions-of-release and https://www.moneymanagement.com.au/features/editorial/guide-superannuation-strategies-non-residents Hope this helps Regards Andy
  6. Andrew from Vista Financial

    any legal way to get UK pension tax free?

    Thanks Alan. Hi Bolus SIPP rules allow monies to be accessed from age 55 and this would now also be the minimum age for all QROPS otherwise they would not be able to be a QROPS under the 'Pensions Age Test' introduced by HMRC in 2015. I am not across the tax rules of pensions/super outside of the UK and Australia (also Gibraltar, Malta and to a certain extent New Zealand for Australian residents) so cannot comment on (pension) tax regimes of other countries. However one major factor that's likely to work against what you are considering is the new tax charge that HMRC introduced in 2017 for QROPS transfers, being the 'Overseas Transfer Charge', this essentially means if a person transfers a UK pension into a QROPS and the QROPS destination is not the country that the person resides in, it will attract a 25% tax charge on the whole pot of money (some exceptions apply, for instance living in the EEA and the QROPS being in the EEA), see here: https://www.gov.uk/government/publications/qualifying-recognised-overseas-pension-schemes-charge-on-transfers/the-overseas-transfer-charge-guidance#eel-chapt2 Of course a lot of this will come down to where you want to retire but assuming it is Australia then a very real opportunity exists in transferring a SIPP to an Australian Super Fund which would then allow tax free withdrawals form age 60+, as Alan points out however there are some Australian tax implications to consider when transferring foreign super funds (UK Pension) to Australia but typically any tax can be paid concessionally at 15% (and it is generally only on the growth of the pot since arrival). Regards Andy
  7. Andrew from Vista Financial

    New 55+ Retail QROPS Super (soon) - UK Pension Transfers

    Hello These two statements aren't quite correct there is quite a bit more too it than this and so to provide advice to you on a transfer plan as Marisa mentions would require us to consult with you in detail. Some general info though, the bring forward rule allows up to $300,000 to be contributed in a 3 year period and after that the $300,000 amount starts again (if under age 65). After six months tax is not payable on the whole transfer amount only the applicable fund earnings (growth amount) and yes there may be an opportunity to pay the tax on the growth at a concessional rate of 15%. You also mention you intend to create a QROPS do you mean via a Self-Managed Super Fund? These vehicles do very much have a place in Australia and setting one up for purposes of creating a QROPS could be a driver however there is certainly a lot to them and they should not be set up without fully understanding what is takes to run one and what involvement there will be by a person as a Trustee on an ongoing basis. The alternative for UK pension transfers to a SMSF is the retail QROPS as mentioned in this post however there are going to be of course pros and cons for each solution based on an individuals personal circumstances. Happy to discuss in more detail when you get to Oz :) Regards Andy
  8. Andrew from Vista Financial

    Investing money back in the UK

    Hi Yes that would seem to be an issue as a non UK resident. There are potentially options by investing in sterling investments from the Australian end however these tend to be via Platforms and the ones that I am aware of have minimum investment size criteria so I think it would also depend on what amounts you are thinking of. Regards Andy
  9. Andrew from Vista Financial

    Catch Up Super Contributions

    Did you know that people can now carry forward unused concessional contributions to Super (these contributions are contributions such as employer contributions, salary sacrifice and tax deductible contributions). This could present some very good retirement (wealth) and tax planning opportunities going forward. Here is some more information on it: Carry-forward concessional contributions One of an extensive range of superannuation reforms the Federal Government announced in its 2016 Budget relates to the opportunity for eligible people to carry forward the unused portion of their concessional contribution cap. Now legislated, this initiative commenced from 1 July 2018. What is a concessional contribution? Concessional contributions comprise of: · Contributions made by an employer on behalf of their employees to fulfil their Superannuation Guarantee obligations, · Contributions made under an effective salary sacrifice agreement between an employee and their employer, · Other discretionary contributions made by an employer. · Personal contributions made by an individual where a personal tax deduction is to be claimed, and · Contributions made by third parties, such as contributions made by a parent for their adult children. · Concessional contributions can be made for or on behalf of a person under age 65 regardless of whether they work or not. Concessional contribution cap From 1 July 2017, the maximum concessional contributions that could be made to superannuation in any one financial year was limited to a maximum of $25,000. This is referred to as the concessional contribution cap. Th cap will increase in the future in line with movements in Average Weekly Ordinary Time Earnings, in increments of $2,500. This means, it may be some year before the concessional contribution cap is increased to $27,500. Total Superannuation Balance To be eligible to carry forward the unused portion of the concessional contribution cap, a person must have a total superannuation balance of less than $500,000. The total superannuation balance is the total of all the money a person has in the superannuation system as at the previous 30 June. When calculating the total superannuation balance all amounts held in superannuation accumulation accounts, the balance of any accounts paying a pension, and amounts being transferred between superannuation, are included. For example, a person with $200,000 is a superannuation accumulation account and a pension account balance of $250,000, as at the previous 30 June, will have a total superannuation balance of $450,000. How the carry-forward opportunity works Any unused concessional contribution cap that accrues from 1 July 2018 may be carried forward for a period of up to five years. If the concessional contribution cap was not fully utilised in any financial year before 1 July 2018, the unused portion cannot be carried forward. Example Elaine has a total superannuation balance of less than $500,000 as at 30 June 2018. Her employer makes concessional contributions of $8,000 in the 2018-19 financial year. She also makes a personal tax deductible contribution of $2,000, bringing her concessional contributions for the year to $10,000. Elaine’s unused concessional contribution cap is $15,000 (i.e. $25,000, less $10,000). She can carry the unused portion of her concessional contribution cap forward for up to 5 years. This means that in 2019-20, the maximum amount of concessional contributions that could be made, provided her total superannuation balance as at 30 June 2019 was less than $500,000 is $40,000 (the standard $25,000 concessional contribution cap, plus $15,000 carried forward from 2018-19). The following table illustrates the application of the carry-forward opportunity: 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 CC Cap* $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 CCs Made $10,000 $10,000 $0 $35,000 $25,000 $25,000 $28,000 Unused cap $15,000 $15,000 $25,000 $0 $0 $0 $0 C/F applied N/A $0 $0 $10,000 $0 $0 $3,000 Unused C/F $15,000 $30,000 $55,000 $45,000 $45,000 $45,000 $37,000** * Indexation of the concessional contribution cap has been ignored ** Remaining unused cap from 2018-19 of $5,000 has dropped off – 5 years have elapsed.
  10. Andrew from Vista Financial

    Pensions in UK

    Hi LPR That's a good question but not one that is a yes or no answer I'm afraid. There are many things to consider when looking at this such as: intended retirement age; required income in retirement; other assets and income streams in retirement; intended actions (ie plans on how you will access) for the pot; size of the pot; type of scheme with Aviva; tax position now and in retirement; currency position/attitude; tax impact if a transfer does occur; intended beneficiaries of funds. These are the types of factors that need to be considered when trying to answer such a question (there's likely a few more too). However, as a guide and assuming that your scheme is a defined contribution scheme, some of the drivers for people wishing to look at a pension transfer to Australia are: funds are in your country of residence; funds can be in your currency of resident (although they can also be invested in sterling but the same can be said for some UK arrangements ie multi-currency investment options); superannuation withdrawals in retirement are tax free; you are only dealing with Australian legislation (so no impact if the UK changes pension legislation/rules); easier to deal with pension companies/Advisers who are in the same time zone/country. can lead to better retirement planning opportunities for some (ie transition to retirement strategies). So you can see there is no one answer fits all here but hopefully this helps a little in understanding what might be involved when considering this. Regards Andy
  11. Andrew from Vista Financial

    Pensions in UK

    pHi David As Alan has pointed out it is not possible to transfer a pension to an Australian Super Scheme until at least age 55. You are likely to have been cold called by the likes of D* **** or F**** C****** or H****** or H***** or G******* and the way that these firms are getting numbers are by trawling through LinkedIn profiles (and the likes) by searching UK expats in Australia and checking employment history, if you have worked for a big UK company such as RBS, BT etc the assumption is then that you have a UK (defined benefit) pension. You are being targeted to try to get you to transfer to either a QROPS offshore (although mostly a no go now due to the new HMRC tax) OR an International SIPP (these are the new QROPS). Now that is not to say that a transfer to an International SIPP is not a viable option/solution for some however you are likely being targeted by an Adviser working on commission only (probably fresh out of a fast track training program) with the sole intention of getting a sale (which for them is a transfer). Also usually with a lot of these firms, once in the new International SIPP (or QROPS) you are guided/recommended into platforms and managed investment funds either with inbuilt non-transparent commissions and/or kick backs to the parent company (which of course means you ultimately pay for these from your transferred money). Therefore be careful who you deal with and rule of thumb especially for financial services is do not deal with any person/company that cold calls (clearly desperate for business), do your own due diligence and ensure that they are at the very least regulated in either the UK (FCA) or Australia (ASIC). Regards Andy
  12. Andrew from Vista Financial

    New 55+ Retail QROPS Super (soon) - UK Pension Transfers

    Yes in this case because it is a government un-funded defined benefit scheme. Other types of defined benefits schemes can be transferred however IF they are transferred to Australia then they will effectively lose their defined benefit status and instead become an accumulation style Superannuation (known as defined contribution or money purchase pensions in the UK). It's a bit like taking a pot of money and buying a lifetime annuity in reverse, you are losing that (deferred) lifetime income stream and instead have a pot of money to invest for retirement and to draw down on in retirement. That said it is still possible to purchase a lifetime annuity type product in Australia with Superannuation (accumulation) money at retirement. Hope this helps Andy
  13. Andrew from Vista Financial

    Selling UK home, and buying in Australia - Capital Gains Tax due?

    Hi Martin Sorry for the delay, I've asked the Mods to move this question to the Money and Finance section, there's a couple of tax guys who post regularly on their that might be better top answer this. Regards Andy
  14. Andrew from Vista Financial

    Transfer Super from QROPS compliant account

    Hi LPR Yes, as David says that would not work from a HMRC perspective, money would need to remain in a QROPS environment for between around 5 - 10 years (depending upon an individual's personal circumstances). However depending upon someone's preservation age ( https://www.ato.gov.au/Super/Self-managed-super-funds/Paying-benefits/Preservation-of-super/ )and work status it may be possible to access this some or all of this money directly (via income withdrawals) much earlier than this and all within HMRC guidelines. Whether or not that would be advisable would again depend on a persons individual circumstances. Regards Andy
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