jldathome Posted June 7, 2023 Share Posted June 7, 2023 Hi All I've had conflicting advice from two different accountants relating to the transfer of my UK pension into an Australian SMSF. Opinion 1 - I can transfer the value of my fund as at the date I became an Aussie resident as an NCC. As the fund was less than $330k at the time, I was led to believe that I could bring that over under the 3 year bring forward rule (ie 3 x$110k). I can then bring the remainder of the fund over but need to pay 15% on that balance. In essence, I thought I could bring over the entire fund over at once. Opinion 2 - The entire fund transfer process is limited by the NCC limits, so I'm now being told I can bring $330k over in this financial year, wait 3(maybe 4) years bring another $330k over, wait 3/4 years bring another lump over etc. If my Australian balance hits $1.7m then I can't bring in any more based on the balance cap. On this basis, it appears I can never get the entire fund relocated, or I'll be too old to be able to spend it.. Pretty unhappy with so-called expert advice. Can anyone confirm one option or the other or an alternate view please? TIA Quote Link to comment Share on other sites More sharing options...
Marisawright Posted June 7, 2023 Share Posted June 7, 2023 Have you considered not bringing it over at all? 1 Quote Link to comment Share on other sites More sharing options...
jldathome Posted June 7, 2023 Author Share Posted June 7, 2023 3 minutes ago, Marisawright said: Have you considered not bringing it over at all? Should have brought it over 20 years ago! Having spent 2 years consolidating, with the idea of local asset/ estate protection, simplification for my likely surviving spouse, and protection from the shrinking views of the UK Government, HMRC, banks etc post Brexit, no not really. To my mind it's only a matter of time before UK-non residents will be ousted from the financial system....eg Barclays closing non-UK residents' bank accounts. Quote Link to comment Share on other sites More sharing options...
InnerVoice Posted June 7, 2023 Share Posted June 7, 2023 46 minutes ago, jldathome said: Should have brought it over 20 years ago! Having spent 2 years consolidating, with the idea of local asset/ estate protection, simplification for my likely surviving spouse, and protection from the shrinking views of the UK Government, HMRC, banks etc post Brexit, no not really. To my mind it's only a matter of time before UK-non residents will be ousted from the financial system....eg Barclays closing non-UK residents' bank accounts. That's a big assumption based on one bank's decision. 2 Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted June 7, 2023 Share Posted June 7, 2023 2 hours ago, jldathome said: Hi All I've had conflicting advice from two different accountants relating to the transfer of my UK pension into an Australian SMSF. Opinion 1 - I can transfer the value of my fund as at the date I became an Aussie resident as an NCC. As the fund was less than $330k at the time, I was led to believe that I could bring that over under the 3 year bring forward rule (ie 3 x$110k). I can then bring the remainder of the fund over but need to pay 15% on that balance. In essence, I thought I could bring over the entire fund over at once. Opinion 2 - The entire fund transfer process is limited by the NCC limits, so I'm now being told I can bring $330k over in this financial year, wait 3(maybe 4) years bring another $330k over, wait 3/4 years bring another lump over etc. If my Australian balance hits $1.7m then I can't bring in any more based on the balance cap. On this basis, it appears I can never get the entire fund relocated, or I'll be too old to be able to spend it.. Pretty unhappy with so-called expert advice. Can anyone confirm one option or the other or an alternate view please? TIA Hi When you say Accountants are these FInancial Planners and do they specialise in UK Pension Transfers? It is possible without breaching to bring the Applicable Fund Earnings ((AFE) - typically measured by the growth of the monies between arriving in Australia and the date of transfer being received) and assuming there have been no Non Concessional Contributions (NCC's) made in the financial year of the transfer and the 'bring forward rule' has not been triggered in the previous two financial years up to $330,000. It's important to note that the AFE are assessed for tax in Australia and it is possible if the transfer across is carried out correctly to pay the tax concessionally from the transferred monies at 15% however if it is not carried out correctly then they are taxed at marginal tax rates. The NCC cap then starts again three FY's after that initial transfer. There are also other strategies to consider that may be appropriate such as the intentional breach strategy (there are implications to work through here) or consideration of taking a Pension Commcencement Lump Sum strategically so as to reduce the pot that is measured against the NCC's cap. The Total Superannuation Balance Cap (where you refer to the $1.7M) could limit a person from contributing however this does work as a credit and debit system so having more than this does not exclude a person from eventually transferring more over. https://www.ato.gov.au/individuals/super/in-detail/growing-your-super/super-contributions---too-much-can-mean-extra-tax/?page=7 Feel free to email (andrew@vistafs.com.au) if you wish to arrange an initial meeting with me to discuss further. Regards Andy 1 Quote Link to comment Share on other sites More sharing options...
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