UK Pension transfer to QROPS

[Skippy2017]

Since HMRC reduced the number of Australian QROPS from 1600 to 1 what is the current advice for those wishing to transfer UK pensions to Australia?

 

Leave the pensions in the UK?

Cross fingers and hope some QROPS get back on the list before it's too late?

Use a QROPS in some other location (eg Malta)?

 

FYI HMRC QROPS list is here:

https://www.gov.uk/government/publications/list-of-qualifying-recognised-overseas-pension-schemes-qrops/list-of-recognised-overseas-pension-schemes-notifications#australia

 

I know that every case is different so to be more specific:

Let us say the pensions involved amount to around £300k and I am 53yrs old.

I will retire in Australia but not need to touch the pension until at least 60yrs of age, probably 65.

[Andrew from Vista Financial]

I think at this stage hold tight and wait to see what might occur/be resolved.

 

With Australia being the number one destination for UK migrants I find it hard to believe that there will not be a solution, there may be something on the cards for people over age 55 in the near future; http://www.pomsinoz.com/forum/money-finance/235043-important-uk-pension-transfers-post-6-april-15-a.html after all the reason we are here is the UK introducing the pension Age test which is predominantly aimed to stop people under age 55 access, therefore in the first instance a QROPS solution for over 55s would resolve this.

 

Also I am aware that Australian Treasury continue to consult with HMRC, perhaps a change in laws to have UK tax relieved monies transferred to Australian Super Funds not subject to the same conditions of release as Australian money (if the member is under age 55) and in line with the 'Pensions Age Test' could be an outcome, this would not be discriminating against the member (in my opinion) as had a transfer not taken place the member would not have been able to access under these conditions in the UK under age 55 anyway.

 

Before considering a move to another jurisdiction I would certainly wait to see what might be resolved as a move to a QROPS in another country will unlikely provide a better outcome in retirement from a tax perspective, Australia will treat the income as foreign income whether from the UK or Malta.

 

Consider also the amount you have, in current conversion rates this (excluding any AFE (Applicable Fund Earnings if applicable)) would breach the non-concessional contribution cap $540,000, so care if a solution going forward exists would need to be taken to avoid this breach.

 

Of course before all of this is even considered investigation would have to be undertaken in relation to exiting your UK scheme, if a defined benefit (and some defined contribution schemes) then a UK Regulated Adviser with the correct FCA pension transfer qualifications would need to conduct an analysis and provide advice.

 

 

Kind regards

 

Andy

[Skippy2017]

Thanks for your reply.

 

My preference is to transfer to an Australian scheme. I would expect the ATO to view any offshore pension with a degree of suspicion...

 

Waiting until 55 would rather mess up my migration plans however.

 

Hopefully some suitable ROPS will reappear on the list soon.

 

As for the $540 limit... My pensions are in different places so I can easily select one or two that sum to the limit and leave the others where they are.

 

Regards.