crispysince70 Posted February 10, 2013 Share Posted February 10, 2013 Hi Was hoping you might be able to answer this on behalf of my ( aged ) parents. If i transfer my private pension to oz, ( i am here on a bridging visa, awaiting the grant of an 804 ) and i get an english state pension, would this expose me to any income tax either here, in Australia or in the UK? Thanks in advace Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 11, 2013 Share Posted February 11, 2013 Hi Was hoping you might be able to answer this on behalf of my ( aged ) parents. If i transfer my private pension to oz, ( i am here on a bridging visa, awaiting the grant of an 804 ) and i get an english state pension, would this expose me to any income tax either here, in Australia or in the UK? Thanks in advace Hi Not too sure of the question you are asking. You want to know whether transferring a Private Pension will give rise to tax or whether receiving the UK State Pension will give rise to tax? Regards Andy Quote Link to comment Share on other sites More sharing options...
crispysince70 Posted February 14, 2013 Author Share Posted February 14, 2013 Hi Andy Yes, he wants to know the answer to both questions, thanks Chris Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted February 15, 2013 Share Posted February 15, 2013 Hi Chris Transferring UK Pensions may cause a tax liability if transferred after 6 months of arrival (whilst a permanent resident), however it is only the growth component not the whole fund that is assessable. Any growth is added to either a persons assessable income for the year or can generally be met by the Super Fund therefore the method to use would be the method that produced the better outcome. UK Pension transfers become tax free components inside superannuation excluding any assessable growth component therefore once drawing the proceeds no tax is payable, in any event any monies drawn from Super are generally tax free after the age of 60. Regards income tax, permanent residents (I believe 804 is permanent) generally declare their worldwide income in Australia and it is generally the case that the agreement between UK and Australia allows pension income to be paid gross from the UK after applying for such http://www.hmrc.gov.uk/cnr/app_dtt.htm#4 This may differ whilst on the bridging visa if it is a temporary visa, it may be worthwhile your parents seeking advice from a Financial Planner and/or an Accountant in relation to their financial affairs. One other note there are rules in place surrounding UK Pensions on how they can be accessed if transferred to another country within a certain timeframe, if your parents have not been here for too long and are planning on drawing money from the Pension they will need to be careful they do not make any unauthorised withdrawals as this could lead to penalties of up to 55%. Regards Andy Quote Link to comment Share on other sites More sharing options...
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