WinkyD Posted June 2, 2014 Share Posted June 2, 2014 Hi Everyone, I'm in the final stages of transferring my NHS Pension to Oz. What I need to know is whether I can use some of the money before transfer to settle my ongoing tax dispute with the Inland Revenue? I've been disputing the tax underpayment but I've now started my PR application and I'm just worried that this will impact on my application. Any advice is much appreciated. WinkyD Link to comment Share on other sites More sharing options...
ali Posted June 2, 2014 Share Posted June 2, 2014 I know my NHS pension got transferred as a lump sum - although to be honest I didn't explore if any of it could be used. Whose arranging your transfer - they should be able to advise. Link to comment Share on other sites More sharing options...
WinkyD Posted June 2, 2014 Author Share Posted June 2, 2014 I'm using UK Pension Transfers - Australia. Will give them a call. Thanks. Link to comment Share on other sites More sharing options...
Notts Posted June 2, 2014 Share Posted June 2, 2014 Unless you are old enough to take some of your pension as a tax-free lump sum, it has to be transferred intact. Any payment out of the scheme for anything else would attract a tax charge of 55%. If you are old enough to start drawing it, you need to check the Aus tax implications of taking out a lump sum. Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 2, 2014 Share Posted June 2, 2014 Hi Everyone, I'm in the final stages of transferring my NHS Pension to Oz. What I need to know is whether I can use some of the money before transfer to settle my ongoing tax dispute with the Inland Revenue? I've been disputing the tax underpayment but I've now started my PR application and I'm just worried that this will impact on my application. Any advice is much appreciated. WinkyD Very unlikely. If you take benefits from a final salary scheme then it cannot be transferred as it will be in payment (and that's assuming you were old enough to take benefits and of course you wanted to start the benefits which you obviously do not as you are transferring). Once transferred to Australia you are subject to two sets of rules ie Australian and UK. Drawing funds under OZ legislation means that you have to be over preservation age currently age 55 whereby 10% of funds may be possible or if retiring and over preservation age up to 100% may be possible. However regardless of OZ rules there are certain time periods in place whereby if you draw monies over and above what you could have drawn were they in the UK then a UK tax charge of up to 55% could apply. Kind regards Andy Link to comment Share on other sites More sharing options...
WinkyD Posted June 2, 2014 Author Share Posted June 2, 2014 Thanks Andy. That was very helpful. Link to comment Share on other sites More sharing options...
WinkyD Posted June 2, 2014 Author Share Posted June 2, 2014 Thanks Notts. Much appreciated. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.