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I appreciate the need for detailed advice as to pension transfer arrangements. However, does anyone know if it would be possible to: (1) take 25% of an UK SIPP tax free in the UK before becoming tax-resident in Australia; (2) transfer the balance to an Australian QROPS/SMSF without crystallising a tax charge in the UK; and then (3) make further payments into the fund in Australia (getting whatever tax benefits are available for such payments from time to time in Australia). I am 55 but anticipate working for 10+ years still.
Hi I'm in my mid 30's and looking at emigrating to Aus near the end of the year. I have the option to put a lump sum in my uk Sipp of around 10k this year and the uk government adds 20% to this amount. This would bump up this pension to about 35k sterling so not that large by any means, so probably not worth transferring to a qrops etc so would keep it in Sipp. In the Uk, you then pay no capital gains or income tax for the life of the pension and you can take a one-off 25% taxfree withdrawal, with the rest taken out as income as you see fit in retirement. My questions are under current rules, if you are an Australian resident for tax purposes 1) Are the funds in your Sipp, taxed in Australia on capital growth and income each financial year, similar to other investments? 2) Are you taxed on the lump sum withdrawal and further income from the pension, at maturation. Given there is 20 years left it hopefully should grow substantially. Just looking for some advice before deciding whether it is worth putting the extra lump sum in the Sipp or not. Many thanks Mack