ena123 Posted January 31, 2020 Share Posted January 31, 2020 My dad is a n Australian permanent resident from the UK. He is just about to go on the Australian aged pension. He wants to receive his private UK pension as a lump sum via'trivial commutation'as he has been recently diagnosed with cancer. On the form from the British fund, it asks if he will be" in receipt of another form of income as well as this". As he will be on the Australian aged pension, will i tick yes on this? Also would anyone here know how the uk pension lump sum will be taxed in Australia? Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 31, 2020 Share Posted January 31, 2020 (edited) If he has applied for the Australian pension then they usually require him to apply for the British government pension first, so surely he is receiving that as income too? If it's a large sum of money, then it would be worth consulting a tax agent, because there could be thousands to pay in tax if he gets it wrong. I'm pretty sure there will be a taxation liability in Australia. Edited January 31, 2020 by Marisawright Quote Link to comment Share on other sites More sharing options...
ena123 Posted January 31, 2020 Author Share Posted January 31, 2020 Thanks My dad left ther UK at 23. (and is turning 66 in a few weeks) and has been working in Australia over 35 years. Centrelink is still processing the agen pension applciation (showing the expcted completetion date as his birthday). Do think even in these circumstances, he is eligible for anything from England We thoughht that he would not be eligible for the UK state pension, but ill try to investigate this. Hi cancer diagnossi means he most likely wont even be alive when his 2020 tax reurn is lodged in Australia (inApril 2021) His UK private pension lump sum is about 14k pounds. My reading leads me t o it being taxed at 25 percent, but i dont very much understand everything I read Quote Link to comment Share on other sites More sharing options...
Marisawright Posted January 31, 2020 Share Posted January 31, 2020 6 minutes ago, ena123 said: Thanks My dad left ther UK at 23. Ah that makes sense. You need a minimum of 10 years contributions to get the UK pension. Quote Link to comment Share on other sites More sharing options...
rammygirl Posted January 31, 2020 Share Posted January 31, 2020 It should only be the growth of the pension since he left UK that is taxed but it will be worth getting some advice. Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted January 31, 2020 Share Posted January 31, 2020 Hello Ena Take a look here regards lump sum benefit payments (to one's self) from foreign super fund (ie UK Pension Funds), it should help: https://www.ato.gov.au/individuals/international-tax-for-individuals/in-detail/super/tax-treatment-of-transfers-from-foreign-super-funds/?page=5#Transferring_amounts_to_yourself Regards Andy Quote Link to comment Share on other sites More sharing options...
Whey aye Posted February 1, 2020 Share Posted February 1, 2020 (edited) On 31/01/2020 at 10:11, ena123 said: Thanks My dad left ther UK at 23. (and is turning 66 in a few weeks) and has been working in Australia over 35 years. Centrelink is still processing the agen pension applciation (showing the expcted completetion date as his birthday). Do think even in these circumstances, he is eligible for anything from England We thoughht that he would not be eligible for the UK state pension, but ill try to investigate this. Hi cancer diagnossi means he most likely wont even be alive when his 2020 tax reurn is lodged in Australia (inApril 2021) His UK private pension lump sum is about 14k pounds. My reading leads me t o it being taxed at 25 percent, but i dont very much understand everything I read Hiya I' ve just done one that is trivial,a pension from an engineering company in the UK from the early 1970's. Gross amount around £1200,I've put the paperwork in a safe place so I'll never be able to find it again,that was only last week. I think it was first 25% tax free,then I paid 20% UK tax on it. Roughly ended up at around £190 tax and I got £1090 paid into a bank account in the UK.They sent me the UK/AUS double taxation agreement to claim the tax back from the UK,as I pay tax in Australia still on my retirement income. The form is around 7 pages,what date I left the UK etc,etc.For me it is easier just to fill in my tax form as£1090 and then say I have paid £190 in the UK.The tax office here will then take it up to the 45% that I will pay on it If your dad can claim the UK tax back then he will have to fill those forms in,and I take it be taxed on it here at his Australian marginal rate. No idea for putting it into super,that is when a working knowledge of these things can be dangerous,rather than expert knowledge. The number on the form to ring for the taxation is + 44 135 535 9022. Website is .gov .UK search for double taxation HMRC PAYE self assessment BX9 1AS UK. Again general knowledge rather than specific, he may not be able to put it into super here ,failing the work test. Sorry to hear about his cancer Good luck When I got mine the trivial is box 2 and 3 ,they are much the same and must be under £30,000 pensions excluding the UK state pension. I think the trivial only applies to UK income,not living overseas. Edited February 1, 2020 by Whey aye Quote Link to comment Share on other sites More sharing options...
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