Hatts

Hi Andrew Yes, preservation age is 59. Yes I am looking to set up SMSFs under which I would purchase resi-property with part of the Oz funds, keep some in cash and the rest in equities. The QROPS (UK) funds would then be solely in equities. To do this I need to have the UK QROPS subject funds separate. Whether the firm combined the funds 'in error' or simply due to me not realising that they would do so is not really relevant. If, for (just one) example, I was in fact to return to the UK then I would want only the UK funds to then be subject to UK legislation. The firm should not have permitted the combination of funds so that any future issues are avoided. On the issue of UK return, I believe that under the recent UK pension changes, one option would be to permanently return to the UK at 55 years old (perhaps to work there again, or just as a retired person) and I could access 25% of the UK pension monies (25% being around AU$125thd). I believe the remaining funds would then stay in my SMSF QROPS but become subject to all UK legislation againbut can remain untouched (no need for an annuity). Should I then later return to Australia then the 5 year/10 year periods would start again. Under that circumstance it would not be a problem as when I turn 59 I have enough in Oz funds (non-QROPS) to retire on especially until the 10 year period has expired. Its an interesting conundrum.

Thanks Andrew Whilst it would still be good to have the contact info for HMRC, the latest update is that I just got off the phone with the Super firm and advised them that they had to split the funds. As you can imagine there are numerous concerns and issues (eg lump sum maximum payments, risk that the UK reverts back to annuity requirement etc etc) with the funds all mixed as one. Acccordingly it is up to the existing Super firm to be able to prove the split of funds and I have told then in no uncertain terms that they have to do this. I got a good hearing from the senior advisor and he also said that this may already be the case as the annual reporting almost certainly splits the QROPS from OZ funds. A question if I may, once the funds are split and identified as QROPS and non-QROPS, am I able to access the UK (QROPS) funds at age 55 (under UK regulations)? I am 51 years old and have enough cash saved to last me say 4 years until 55. I can access the Australian funds at 59. So, if I could 'retire' under UK regulations (I would still be inside the 5 year period from returning to Australia from the UK) and access the UK funds (25%) then I could theoretically retire tomorrow using first cash (to 55) then the UK funds (to 59) then the Australian funds. I also have c70thd non-preserved from the Australian funds that I could use in an emergency. I would then look to let the remainder of the QROPS funds continue untouched until after the 10 year peroid and access then as Australian funds. This all seems too good to be true though. I look forward very much to your feedback.

Andrew I am seeking to create an SMSF and use some funds for property purchase. Unfortunately my existing super fund blended my existing OZ monies with the QROPS monies when they arrived (I worked in Oz for many years and then in the UK and now back in Oz) so my SMSF creation is somewhat difficult due to this. I need to assess how to break-out the UK monies (a simple task except for HMRC involvement no doubt). I have raised this issue in the general finance forums of this site as I see that you have already been asked this question to some extent. I am hoping someone already has a ruling from HMRC but if not then I wish to seek HMRC sign-off. My question to you is, do you have a contact email/address for HMRC where the question would go to the right people? Thanks

I returned to Oz from the UK a year ago and transferred my UK personal pension monies to a major industry Super manager who was already looking after my significant Australian monies that had been accumulated prior to living in the UK. They then just amalgamated all my existing monies and the UK QROPS monies (I thought they would be separate accounts). I now wish to create an SMSF and use some of the Australian monies for residential property purchase as part of my whole investment plan (ie I would not need the UK monies for the property). How do I split the QROPS monies from the Australian funds? Has anyone had a HMRC ruling? Common sense would say that I withdraw the exact amount of UK monies that were transferred (plus the investment returns if necessary) and place these into a QROPS SMSF and the remainder then can go into a non-QROPS SMSF (as was teh case when teh UK mnies were transferred in the first instance). However I do not want to get HMRC offside and I intend to meet all Australian and UK requirements and hurdles for the SMSF to the letter. Thanks very much for any assistance.