FrankFinancial

My clients have used Alan Collett and have been very satisfied with his work in this area. rgds Frank Alan Collett alan.collett@gmtax.com.au Fellow of the Institute of Chartered Accountants in England and Wales Member of the Institute of Chartered Accountants in Australia Principal - GM Tax W - http://www.gmtax.com.au Level 27, Rialto South Tower, 525 Collins Street, Melbourne, VIC 3000, Australia - T +61 (0)3 9935 2929 Postal address: PO Box 467, Belmont, VIC 3216, Australia Offices also in Sydney, Perth, Brisbane, Adelaide, and the UK

Having worked in 3 different countries as an adviser I would say that the quality of advisers can vary here so you do need to do your research. I would agree with Rob's view of avoiding large institutions as you tend to get a standard solution. I recommend selecting 3 from your local area and visiting each of them with a list of questions at hand (I can provide a list if required), you will find that this will give you a good perspective of what they have to offer, their fees and their service model. All the best Frank

Your proposal will add complexity to your financial life but also opportunity to manage your affairs to the optimum level. It impacts all aspects of your financial situation including investments, private pensions/superannuation, state benefits, estate planning and tax. You made the right decision in obtain citizenship in Australia giving you flexibility to return. I would not make any rash decisions about your pensions till you are clear on your overall plan. I have written a white paper addressing many of the financial issues that UK Expats face living in Australia which I think you would find beneficial. It is too detailed to discuss in this post and can be found on our website. Best of luck Frank

Nedrom,Yes you can claim if you have made voluntary contributions to your company scheme. The UPP component is tax free and is calculated by dividing the UPP of your pension by a life expectancy factor, based on age and obtained from life expectancy tables. Alternatively you can get the ATO to calculate it for you here (https://www.ato.gov.au/Forms/Determination-of-deductible-amount-for-UPP-of-a-foreign-pension-or-annuity/) Hope this helps rgds, Frank

Jason,The current proposed legislative change has no impact on your plans to receive a pension. The question for you remains are you confident that the UK government will be in a position to fund your pension. If yes, which is a reasonable conclusion, I would not make any change to your sensible plans. kind regards Frank

No you do not have to apply on an annual basis. kind regards Frank

There is no requirement to have a will in the UK for your UK property but given that your Australian executor will have to obtain probate in the UK courts it is advisable. Your UK pension can paid directly to the beneficiary. It also advisable referencing your UK will in your Australian will particularly if you wish your asset to be distributed by your Australian will. Can you pm or contact me directly with some of the details of the assets and what you are trying to achieve and I can put in touch with one of the solicitors I deal with in the UK. Kind regards, Frank

Pm your country of residence and the funds you are trying to buy and where they are registered and I will consider it further rgds Frank

Are you referring the recently approved Alternative Investment Fund Managers European Directive? That is the only legislation that somewhat matches your concerns that I am aware of. It was introduced to increase regulatory oversight of Alternative funds that market/sell in the EU. I would say that it only applies to alternative funds that want to market/operates in Europe so it should not impact Europeans(including the UK) owning funds outside of the EU. I have not seen any impact on the UK Expat clients that I manage money for and we us a few alternative funds. All the best Frank

In my years in this business I have yet to find a strong enough case to transfer out of a defined benefit scheme. It provides a guaranteed income stream that is normally indexed and puts the risks on the provider. That is gold, in an age of uncertainty in relation to longevity risk and low interest rates. The only exception to this is if you are concerned with the financial strength of the provder of the annuity. If your employer is not financially strong it can be a deciding factor to commute.I found that the clients that have ignored my advice and transferred into personal super/pension funds have regretted it and continue to do so for years and years. Best of luck Frank

Winter your understanding is correct as you were contract out for a period your State pension will be reduce for this period. People with accumulated SERPS and S2P will have their basic pension increased. kind regards, Frank

I f you have worked and lived in the UK for a total of 3 years before leaving Australia you can make extra voluntary contributions to boost one’s UK pension entitlement. You seem to have met this requirement. If you do not plan to return to the UK, there is no difference to the pension benefits you receive (Class 3 entitles you to additional benefits in the UK). In order to be eligible to qualify for class 2 contributions you need to have been in employment in the UK before leaving and also in Australia at the time of application.Yes you are correct in terms of backdating contributions. A key point to consider in your calculations is that currently the UK state pension paid to an Australian resident is not indexed for inflation in payment which means over time the payment is eroded by inflation.

You are eligible even as a non-domiciled indivdual for what is known as the Nil Rate Band on your situated UK assets that form part of your UK estate. It is currently £325,000 for the financial year 2014/2015. This means the first £325,000 of your UK situated property would be exempt from inheritance tax.

As EKF advises it makes no tax difference in tax terms as you are assessable on your worldwide income as a permanent Australian resident.

In terms of the pension you will need a litte bit more information before you can determine your options. Had he commenced a pension or was he still in accumulation ? If in pension phase what type of pension did he commence? Was a reversionary beneficiary nominated? Ask the provider the options available to you as it important to get it right otherwise you can pay 55% tax on lump sum payments. Dependent (scheme/drawdown/annuitiy) pension is generally preferable. It may be worth getting financial advice.In terms of the shares, as they were in his name they will form part of his estate. If he has a will in place they will be dealt under the terms of the will by the executor. If no will, under intestacy rules the estate is split depending on your circumstances (http://www.adviceguide.org.uk/wales/relationships_w/relationships_death_and_wills_e/who_can_inherit_if_there_is_no_will___the_rules_of_intestacy.htm) and you will need to apply for letters of adminstration in the courts.

I have used Ozforex and so have a number of my clients, found the rates competitive particularly for larger amounts. No issue with remitter or receiver fees.

In general when you are leaving the UK and are receiving government benefits such as family support payments or a pension you have to advice the relevant government department.It is wise to complete a P85 form when moving aboard as it prevent withholding tax being deduct at your UK financial institution particularly relevant if plan to maintain the funds in the UK

Andrew,Good update. thanks

Yes even If you are on a 457 visa you still can get Life,TPD,Trauma or income protection depending on the insurance company , if your intention is to permanently stay in Australia. The final policy will have a residency exclusion that if you depart Australia for longer than 3 months then there is no payout. Frank

I appreciate your concerns given your current circumstances. As the other contributors have advised it depends on the Terms & Condition of the policy but in practice, for most mainstream policies, being overseas and living in Australia will not impact your Life & Critical illness plan. That said it can create it own set of challenges when claiming. Smaller firms with cheaper policies are more likely to have such residency clauses.I would go to the insurance company and advise them of your situation. The worst case scenario is that they advise you that you will not be covered, at least you will no longer waste money on a policy that never was going to payout. That said I would keep it until you were sure that you were not returning to the UK.Another option is to apply for cover when you get to Australia, your health issues may not be as serious as you thought and you may be able to get insurance at an equivalent premium.