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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

    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
  2. 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
  3. 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.
  4. 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
  5. 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
  6. 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
  7. 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
  8. 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
  9. Andrew from Vista Financial

    Mortgage with 489 visa

    Hello Barry Mortgage rules are a changing constantly over here so may be better to explore this as and when you are near to actually looking. That said I understand the 489 to be a temp visa and in this case it may be better to wait until you get permanent residency due to the additional costs that (generally) temp residents need to pay to purchase (ie additional 7% stamp duty in SAQ over and above the usual 5%). Regards Andy
  10. Andrew from Vista Financial

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

    Just to add that we do specialise in this area (UK Expat Advice), so if anyone does require advice around their UK Pensions and Retirement Planning this is what we do on a daily basis. We have been working with UK expats in this space for over a decade now and still have an ongoing relationship with many clients (as their Advisers) whom we assisted over a decade ago. We have the ability to advise on and recommend QROPS in Australia, be that the above Retail Super or an SMSF (where a transfer to Australia is appropriate). We also have the ability to advise on and recommend (which is quite rare for Australian Advisers) an International SIPP in circumstances where an individual is less than age 55 or even above age 55 but with a balance of more than the Australian Contribution Caps (which could then limit how much can be transferred to Australia in one hit). This solution can then allow us to become your Australian Regulated Investment Advisers on your UK Pension monies with gives the added advantage of having the option of investing that money in UK Pounds or Australian Dollars. Feel free to contact us if you wish to discuss further. Andy
  11. Andrew from Vista Financial

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

    Well the 'Australian Expatriate Super Fund' have undergone their HMRC review and have been added back to the ROPS list. A couple of weeks late but better late than never as the saying goes: https://www.gov.uk/guidance/check-the-recognised-overseas-pension-schemes-notification-list#australia Tidswell Master Superannuation Plan Added
  12. Andrew from Vista Financial

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

    Watch this space folks...…...should be some news early next week!!
  13. Andrew from Vista Financial

    Fund Supermarket in Australia

    Hi Greg1 If you are looking to access listed funds (ETFs etc) then you could easily set up an online Broker account AND you could also access a range of managed funds via the ASX service M-Funds (so long as the Broker has this facility). This way there are usually no ongoing administration fees to administer the holdings (unless you hold foreign currency investments then there may be). Otherwise you could look at opening a Wrap product, these will have access to usually the ASX 200 shares, a range of ETFs and around 300-500 managed funds. You will be charged an annual administration fee for such a service though (usually a tiered structure and based on percentage, say 0.4% first $250k etc). Hope this helps. Andy
  14. Andrew from Vista Financial

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

    Hi David Unfortunately not, they have informed me that it is taking longer at the Australian end (APRA) than expected so a bit difficult to formulate a view around a date. I have also been informed by AESF that they have resolved all issues with HMRC and hope to be back on line soon. Hope this helps. Regards Andy
  15. Andrew from Vista Financial

    UK 25% Tax free withdrawel

    Hi Neil Very broadly and as Ggy has pointed out above the ATO typically will assess a foreign super benefit payment (a SIPP PCLS) on the growth since a person becomes resident known as the Applicable Fund Earnings (AFE). If the benefit payment is paid directly to a person then this AFE is typically assessed at a persons Marginal Tax Rate. In terms of apportioning any AFE (ie by 25% as that is the amount of the pot taken) this is not the case as we understand it (unless immediately at the time the payment is made the remaining pot secures a lifetime income stream for instance a defined benefit scheme) in which case the growth of the whole scheme will be considered even though only 25% of the pot is withdrawn. That said the AFE cannot exceed the amount of benefit taken. Happy to discuss further if you wish. Regards Andy
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