GM Tax

Super/UK Pensions - UK Pensions - Transfer to Australia

Individuals over the age of 55 are eligible to consider a transfer of their UK pension benefits to Australia. The main benefit is that any Lump Sum Payment or Pension Income generally paid from an Australian Superannuation Fund would be received free of tax once a condition of release has been met i.e. no tax to pay in Australia. Once a condition of release has been met your superannuation income is exempt income in Australia.

Australia has contribution caps in place that limit the amount that can be transferred to Australia at any one time, these are as follows; 

  • $110,000 pa plus growth since date of tax residency; Or
  • $330,000 pa plus growth with no further contributions for the next 2 financial years.

Individuals under the age of 67 and individuals who turn 67 (from 1 July 2020) in the financial year can make contributions without restriction however, individuals once over the age of 67 in the following financial year have to satisfy the work test (40 hours over a consecutive 30-day period) to enable you to make contributions into Superannuation.

Plus once you are over the age of 67 you are not eligible to use the bring forward provisions and so you would be restricted to transferring $110,000pa to Australia (from 1 July 2020).

When considering a transfer of your pension benefits consideration needs to be given to any increases in your funds values since your date of tax residency. You will be liable to pay tax at your marginal rates of tax on the increase in value since the date of tax residency however, you can elect for the superannuation fund to pay the tax which is restricted to 15%.

We are able to advise regarding the taxation of UK lump sums and regular pension incomes in both the UK and Australia. We at GM Tax can also provide you with a comprehensive guide to your UK & Australian tax position when considering accessing or transferring your UK pension benefits to Australia.

Please send an enquiry via our contact us button or call a GM Tax office closest to you.

GM Tax also offers the following services:

  • Preparation of Financial Statements for Self Managed Superannuation Funds (SMSF).
  • Preparation of SMSF tax returns, with all returns submitted to the ATO electronically.
  • QROPS approval applications with HMRC, including attendance to trust deed alterations.
  • Assistance with QROPS reporting obligations to HMRC.
  • Preparation with the application for exemption from UK tax in relation to UK Pensions with Australia.
  • Establishment of SMSF and attending to all appropriate registrations.
  • Preparation and electronic submission of UK and Australian tax returns.