Smtaz Posted March 13, 2015 Share Posted March 13, 2015 Hi all, I realise there have been similar threads but not quite this one. I have worked in Aus for 23 years & have private super, I'm 50 now & would like to return home, UK in about 5 years. I shall be too young to access super without penalties at that time but I believe if I wait until 60, not to move back but to withdraw super, it is tax free. I think if I take it as a fortnightly pension type payment the UK gov will tax it but if I take as a lump sum it should be a tax free money transfer. Does this sound correct & will Aus tax me if I've moved away? Long winded I know but that's the subject. Quote Link to comment Share on other sites More sharing options...
Guest Posted March 14, 2015 Share Posted March 14, 2015 (edited) You need to check with your super fund what the preservation age is. If it's 60 accessing it without penalties at 60 will be fine. Sadly i think it will most likely be 65 as is mine given that your around the same vintage as me. I also think if you access it after you've moved back it will be taxed as you will no longer be classed resident in Australia (not 100 percent sure on this though). Good luck. Edited March 14, 2015 by Guest Quote Link to comment Share on other sites More sharing options...
winter1 Posted March 14, 2015 Share Posted March 14, 2015 (edited) Hi all, I realise there have been similar threads but not quite this one. I have worked in Aus for 23 years & have private super, I'm 50 now & would like to return home, UK in about 5 years. I shall be too young to access super without penalties at that time but I believe if I wait until 60, not to move back but to withdraw super, it is tax free. I think if I take it as a fortnightly pension type payment the UK gov will tax it but if I take as a lump sum it should be a tax free money transfer. Does this sound correct & will Aus tax me if I've moved away? Long winded I know but that's the subject. Unfotunately it is not as simple as that. If you are resident in the UK and withdraw your Australian super as a lump sum and transfer it to the UK you will still be liable to UK tax on the lump sum as it would be considered to be Pension income. If it is a substantial amount then it could attract tax at 45%. No allowance will be made for the contributions tax or even if you have made after tax contributions. The only concession is that only 90% of it will be taxed. If you draw it as an income in the UK you will get your tax free threshold and again taxed on 90% of it. If however you withdraw it before you leave Australia and put it in a bank account then you can transfer it as capital. The tax on a lump sum in Australia prior your 60th birthday will take into account after tax contributions and the rest is usually taxed at a lesser rate but again this depends on the amount. Your super fund will be able to tell you your rough liability. If you were to transfer it as you initially indicated a large sum might attract a please explain where it came from from HMRC which the banks are liable to communicate to HMRC. There may also be capital gains liabilities depending on the exchange rate difference based on when you became resident in the UK and when you transfer the money. Edited March 14, 2015 by winter1 Quote Link to comment Share on other sites More sharing options...
Smtaz Posted March 14, 2015 Author Share Posted March 14, 2015 Thanks for that, I shall speak to the Super people. Sounds like I'll be losing at least 20-30% of it whichever way but I guess if it's withdrawn & banked before I leave at least I can wait for a descent exchange rate to transfer to UK. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 14, 2015 Share Posted March 14, 2015 Thanks for that, I shall speak to the Super people. Sounds like I'll be losing at least 20-30% of it whichever way but I guess if it's withdrawn & banked before I leave at least I can wait for a descent exchange rate to transfer to UK. Not necessarily. If you wait until you reach pension age and draw it as a pension, it will be taxed as ordinary income. BUT remember, you'll have a tax free threshold. If (like most pensioners) your income is quite low at that point, you may not be liable for much tax on it at all. Quote Link to comment Share on other sites More sharing options...
Huggy75 Posted March 15, 2015 Share Posted March 15, 2015 If however you withdraw it before you leave Australia and put it in a bank account then you can transfer it as capital. Sorry for butting in but confused.com! I've asked similar questions and basically been told I have to leave my Australian Super in Australia until pension age which is 67 (I'm currently 39) as we're not allowed to transfer it back to the UK? Quote Link to comment Share on other sites More sharing options...
Guest Posted March 15, 2015 Share Posted March 15, 2015 Sorry for butting in but confused.com! I've asked similar questions and basically been told I have to leave my Australian Super in Australia until pension age which is 67 (I'm currently 39) as we're not allowed to transfer it back to the UK? You are i believe correct if you have pr or citizenship it has to stay until retirement age. Quote Link to comment Share on other sites More sharing options...
winter1 Posted March 15, 2015 Share Posted March 15, 2015 (edited) Sorry for butting in but confused.com! I've asked similar questions and basically been told I have to leave my Australian Super in Australia until pension age which is 67 (I'm currently 39) as we're not allowed to transfer it back to the UK? Yes your are correct I was basing this on after reaching preservation age. As mine was 55. The original poster I assume will be around 59 as per his details. I was cautioning about the fact that the UK tax authorities would consider any sum taken from a pension fund as pension income if you are already resident in the UK. Edited March 15, 2015 by winter1 Quote Link to comment Share on other sites More sharing options...
Smtaz Posted March 15, 2015 Author Share Posted March 15, 2015 My preservation age is 60 so apparently I can get it from then, just not sure if I have to be living in the country to access it. My Australian pension age is 66 but I shouldn't be around for that. So huggy75 your super age may be different from Aus pension age. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 15, 2015 Share Posted March 15, 2015 My preservation age is 60 so apparently I can get it from then, just not sure if I have to be living in the country to access it. My Australian pension age is 66 but I shouldn't be around for that. So huggy75 your super age may be different from Aus pension age. You'll have to be living in the country to access it tax-free. You can access it from overseas but there will be tax implications. Quote Link to comment Share on other sites More sharing options...
Smtaz Posted March 15, 2015 Author Share Posted March 15, 2015 That was what I thought so I'll just have to work out which way is going to lose the least of it, I certainly don't want to be taxed here on it & taxed in UK as a fortnightly income. Monday phone call to Hesta may help. Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 15, 2015 Share Posted March 15, 2015 That was what I thought so I'll just have to work out which way is going to lose the least of it, I certainly don't want to be taxed here on it & taxed in UK as a fortnightly income. Monday phone call to Hesta may help. That's not what I meant. Super is not taxable in Australia, so if you're drawing your super as a pension, Australia won't tax it. It will only be taxable as income in the UK and remember you'll have a tax-free threshold. Quote Link to comment Share on other sites More sharing options...
Huggy75 Posted March 15, 2015 Share Posted March 15, 2015 Thanks for the clarification, guess I'll be leaving it in Oz when I move back - I'd better not lose the paperwork for the next 20+ years then! Thanks again x Quote Link to comment Share on other sites More sharing options...
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