mike255

Excellent advice I will look into doing that. Thanks very much

pam

Note of caution. we need to refer to the new white paper on pensions, now going through House of lords. The small print suggests that although 35 years of qualifying years is required to get the full pension, this is only for people who didn't opt out of SERPS (time paying into an occupational pension). if you opted out for part of those years then the statepension may be reduced. On the other hand payments to aus will not be index linked either.

Yes. It is.

See post #8 and #11.

Thanks Nicky

Even though contributions to super have been already taxed at 15%, and any "after tax" voluntary contributions paid into super, are taxed again when the super drawn. Effectively pensioners become "double taxed" if they become UK resident. I can see why people would be a bit upset about this.

Do you know whether the UK taxes the super or pension at the marginal rate (say 20% or 40%) and subtracts the Aus tax already paid ? or offers any allowance of any kind ?

Cheers

Mike

1. I think the point is here that an Australian Occupational Superannuation scheme has tax deducted when you or your employer contribute.. so any money going in is taxed albeit at 15% on concessional contributions. However if you put any money in from a something like a sale of a house or car then you will be putting money in from funds that have been fully taxed.

 

2. If you remain in Australia this super fund can pay you an income once you turn 60 totally free of income tax.

 

3. If you move to the UK then it will be taxed as an income stream at normal rates.

 

4. If instead of putting that money in super you had put it in the bank then you could draw it down whenever you want without it incurring tax.

 

5.OK you will have received some concessional tax relief on some of it but will still have paid at least 15% on it and may well have paid 30% on it and then you get taxed again in the UK at at least 20%.

 

6. If you have paid into a UK pension fund whilst working in the UK you get full Tax relief at your highest rate up to 50% so yes it would be fair to pay tax on this as you have already had your tax relief.

 

7. There are financial instruments in the UK that recognize you have paid tax on certain investments i.e. Purchased Life Annuities (not to be mixed up with common or garden annuities).

 

the question I put was to see if anyone knew if there were certain exemptions on Australian Occupational super. If you have an Australian state pension then I would expect to pay tax on it or any other pension for that matter it is just the way that Australian super is taxed. Maybe it would be fairer to tax it at a sliding scale from 5%.

This is a great question but somehow got sidetracked a little. Does anyone know whether Australian super (already taxed at 15%) is taxed by UK Govt, if the super is drawn when the pensioner in the UK ?