The recent changes to the HMRC UK pension transfer rules has excluded many from being able to transfer their fund to a qualified Australian Superannuation Fund.
Who is not eligible to transfer their UK Pension?
All unfunded Civil Pension Schemes: eg NHS, Police Pensions, Teachers Pensions, Firefighters, Armed Forces etc.
Who is currently eligible to transfer their UK pension?
The HMRC ROPS list continues to exclude public offer schemes, therefore, in order to make a compliant transfer of a UK pension, you must either be:
- A member of a public service superannuation fund on the ROPS list. As at June 2016 these included
- Australian Defence Force Super Scheme
- CSS (Commonwealth Super Scheme)
- Local Government Superannuation Scheme
- Military Super and Benefits Scheme
- Public Sector Super Accumulation Plan OR
- You must be at least 55 years old, with permanent residency status in Australia, satisfy the work test (if over 65yrs old). These transfers are now possible via setting up an Over 55 Self-Managed Super Fund (SMSF) with appropriate ROPS certificate from HMRC.
Over 55 SMSF Transfer Option:
Aspect Wealth Adviser’s service includes the following:
- Free Consultation with a ROPS specialist adviser prior to engaging our services
- Preparation of a comprehensive report tailored to your particular situation. If you decide to proceed with a transfer after receiving the advice, our service includes:
- Establishment of an Australian SMSF with ROPS compliant trust deed
- If corporate trustee appropriate, establish and register company via ASIC
- Application to HMRC for ROPS status
- Preparation of all fund trustee/member application and minutes
- Australian Tax Office (ATO) fund registration
- The provision of Tax File Number (TFN) and Australian Business Number (ABN)
- Establishing fund bank accounts
- Ensure compliance with ATO requirements for any tax on the transfer (where applicable)
The Importance of Advice:
Given the impact the changes have on many Ex-pat’s lives the importance of gaining financial advice has never been so important. You need to get advice on the following implications prior to retirement if you have a UK Pension scheme that will remain in the UK:
- Access to the Centrelink / Age Pension
- Estate Planning
- Cash-flow analysis
Please call our office on (07) 3354 9000 and speak with one of our advisers to discuss how your situation has been affected.