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Hi Everyone,

seeking advice on how we can start upma UK bank account whilst living in Melbourne. Our plan is to retire back in Scotland 🏴󠁧󠁢󠁳󠁣󠁴󠁿 in 5 years.

Any advice on anyone who’s successfully done this whilst living in Oz would be appreciated.

🙂

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24 minutes ago, Elaine Davis said:

Hi Everyone,

seeking advice on how we can start upma UK bank account whilst living in Melbourne.

Can't be done.  There are new money-laundering laws in the UK which make it illegal for you to open an account in the UK.  Any banks which allow you to do so, are breaking the new law - so I'd be worried that you'd open it, then they'd discover they did the wrong thing, and eventually close it again.

At a pinch, you might be able to open an account, and put money in it, but you won't be able to do any transactions or withdraw the money until you arrive in the UK and can prove a residential address. So the money will be stuck.  

Frankly, I'm not sure what the benefit would be, anyway.  You can't get an ISA as a foreigner so your money would just be sitting there, not earning any interest.  

If you particularly want to send your money to the UK in advance, you could consider Premium Bonds.  Alternatively, an investment account on the Channel Islands or the Isle of Man, though when I looked, the fees were expensive.  

How old are you and have you looked into things like pensions?  

Edited by Marisawright

Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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Thanks Marisa ! This is very helpful and we thought that was the case. Our plan is to retire to Scotland our homeland in 5 years at 62 & 63. 

We are looking to buy a property there and sit on it until we sell up and return. We both have 11years NI contributions so don’t see ourselves getting much pension and will be self funded retirees. Hence the requirement for a bank account for transactions etc 

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1 hour ago, Elaine Davis said:

Thanks Marisa ! This is very helpful and we thought that was the case. Our plan is to retire to Scotland our homeland in 5 years at 62 & 63. 

We are looking to buy a property there and sit on it until we sell up and return. We both have 11years NI contributions so don’t see ourselves getting much pension and will be self funded retirees. Hence the requirement for a bank account for transactions etc 

You will need a bank account, but not before you arrive.   You can open an account with Moneycorp, and transfer your Aussie dollars into it before you go.  Then when you arrive in the UK and have got your UK bank account opened, you just instruct Moneycorp to pay the money into your British bank account, and it's done in a day.  No fees if you join as a PomsinOz member.

There are other companies who do the same thing and you might get a slightly better exchange rate if you shop around. 

Keep your Australian bank account open and keep your credit cards, because when you arrive you'll have no credit rating in the UK so getting cards etc will be difficult. 

 

You need to write to the International Pension Centre and I'd suggest doing it now rather than later.  If you are still working, you can make extra contributions every year and that will  improve your British pension. You can even backpay a few years.  Write and ask, and they'll send you all the details.

https://www.gov.uk/international-pension-centre

As you're leaving Australia before retirement age, you won't be able to get the Australian age pension at all. 

As for your superannuation, be aware that if you withdraw it as a lump sum after you've left Australia, you could lose a big chunk of it in UK tax.  

Edited by Marisawright

Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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Moneycorp looks like a good option to go  judging by their reviews, with funds appearing safe for short time until UK bank account is set up. Re Super we plan on withdrawing lump sum whilst still in Oz at 62+63. My understanding is this practice can be done as long as Superannuation Co has received written  confirmation that member has fully retired and reading that this is also tax free according to Suoerguide.com.au unless I’m missing a few points. We’re reluctant to further sal sacrifice towards Aussie Super given the global uncertainty with markets and prefer saving cash even though 2.8% is about the best interest rate here but at least funds are not going backwards.

Thanks again 

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Contact your super fund and ask them to confirm you will be able to withdraw your lump sums at 62 and 63, just in case.  

Once the money is in your bank account, it's just money, and you can transfer it wherever you like, no tax implications.  Just make sure it's in your bank account before you're due to leave the country!

If you're not going to build up your super, all the more reason to make extra National Insurance  contributions to build up your UK pension.  Don't delay though, because I believe it is going to get a lot more expensive after April this year!

https://www.telegraph.co.uk/pensions-retirement/financial-planning/state-pension-top-up-pay-741-now-get-extra-5925-retire/

Edited by Marisawright
  • Thanks 1

Scot by birth, emigrated 1985 | Aussie husband applied UK spouse visa Jan 2015, granted March 2015, moved to UK May 2015 | Returned to Oz June 2016

"The stranger who comes home does not make himself at home but makes home itself strange." -- Rainer Maria Rilke

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33 minutes ago, Elaine Davis said:

Moneycorp looks like a good option to go  judging by their reviews, with funds appearing safe for short time until UK bank account is set up. Re Super we plan on withdrawing lump sum whilst still in Oz at 62+63. My understanding is this practice can be done as long as Superannuation Co has received written  confirmation that member has fully retired and reading that this is also tax free according to Suoerguide.com.au unless I’m missing a few points. We’re reluctant to further sal sacrifice towards Aussie Super given the global uncertainty with markets and prefer saving cash even though 2.8% is about the best interest rate here but at least funds are not going backwards.

Thanks again 

Superannuation is just an umbrella structure really for your investments.

There is nothing stopping you having your funds invested in cash within your super funds.

Your fund will allow you specify the mix of how your super is invested.

Depending on your tax rate now it may be the best thing you can do to put as much into super as possible. You may only pay 15% contributions tax instead of perhaps 40% tax if you take it as salary.

  • Thanks 1

I want it all, and I want it now.

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Thanks and yes we have thought about this option too. Looking at fully withdrawing Super at 62+63 and not taking as salary option. Will be drawing down income from cash + super+ sale of principal residence. Got the big 5 years plan happening 😁

just looks for ways of minimising tax implications and not a fan of Financial  Advisors  who mainly have their own agendas.

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