How long have you been in Australia? How many UK Pensions do you have? Have you been receiving regular updates on your investments?
Are your pension statements filed away until retirement? Did you know that the administrator or personal pension who was looking after your pension when you migrated, may not be the same administrator or insurance company who is currently looking after your pension. Did you know that upon retirement the onus is on you to provide evidence of your membership!
It’s very important to get regular updates from the UK and keep in regular contact with any updates in your circumstances or personal details. They will always contact you via your last known address on their records. They may not even notify you when they change administrator.
As you may be aware if you are under 55 then you are unable to transfer these funds to Australia. However you still have options, especially if consolidation is a key priority for you.
Imagine all of your UK funds in one place, with one logon, one password and one adviser, who is based here in Australia.
Our financial advisers can recommend the right product for your UK Pensions consolidation. You also can choose to hold your funds in GBP or AUD, You can also invest in a range of Australian portfolios while you wait until you can roll the funds over to an Australia QROPS at age 55.
If you are over 55, consolidation prior to transferring might be your only option, with the reduction in contribution caps from July 2017 it is important to consider the caps prior to transferring and by consolidating the funds it is easier to move each tranche without worrying that the funds are coming from several source at different times and the remaining funds can be managed until the tax year of transfer.
PTS are always happy to investigate all of your options. Call the PTS on 08 9233 9269 or email email@example.com
Our initial investigations are provided free of charge and are provided to update you with information and current options for your UK Pension Benefits.
It was a relief this morning to review the Budget and it would appear that UK Pensions and QROPS have not received any major changes in the UK Budget.
Positive news for those with larger balances, the lifetime allowance (LTA) will increase by £30,000 from £1 million to £1.03 million from April 6 2018,.
The UK Personal Allowance is on the rise from £11,500 to £11,850 in the 2018/2019 tax year.
If you are interested in other major announcements from the UK Budget a summary can be found by following the attached link: https://www.gov.uk/government/news/autumn-budget-2017-25-things-you-need-to-know
The very first video in our series of pension explainer videos is a very short introduction to Pension Transfer Specialists. All of our videos will be relatively quick. The first being 45 seconds! Be sure to share the video and subscribe to our newsletter to receive short infomercials.
They will easily explain the services we offer, together with short explanations, common problems, QROPS rules, options for transferring. They will compare features and benefits of pension transfers and will be short, informative and easy to understand!
We will also be releasing short videos to explain how to maximise your State Pension. Who can claim? When can you claim? How much is the pension? How can you achieve more!
All these questions and more will be explained in the video’s coming soon.
We would love to hear from any expat who has questions regarding their UK Pensions.
Call now 08 9233 9269 or email firstname.lastname@example.org
Important Changes to QROPS [initial understanding]
9th March 2017
The attached is not financial planning advice. This is for your information only.
As you are currently undertaking a UK pension transfer or have made enquires to transfer your UK pension to Australia, it is very important that you read this letter.
You need not be concerned about completed transfers.
UK Changes QROPS rules
Overnight HMRC has confirmed that payments made to QROPS schemes may be subject to UK tax.
A tax will apply where the transfer is made to a QROPS in one country where the individual is not a current resident. SMSFs are therefore not affected.
If your transfer paperwork has been received in the UK prior to 8 March 2017 and you are transferring to i-Select (ie a QROPS in another country) then it would appear this tax charge will not apply. (We are seeking stronger clarification).
HMRC has also introduced a revised rule regarding withdrawals from QROPS. HMRC will apply tax to any withdrawal for 5 years from the date of transfer. This applies to payments made from QROPS where the transfer is received after 5 April 2017. This would seem to apply to SMSFs. (We are seeking stronger clarification).
How are PTS responding?
1. We are seeking formal guidance on the changes from an international tax specialist. Once this has been received we will notify you as soon as possible.
2. If you’re transferring direct to a SMSF you are not affected by the initial 25% tax charge. Future withdrawals would be subject to UK tax for 5 years from date of transfer if funds are received after 6 April 2017 (we are seeking stronger clarification)
3. Where a transfer is completed to New Zealand (or other country) but you are awaiting a rollover to your SMSF we are seeking clarification on how these changes will affect you
4. Where transfers are in process we are working with the UK schemes to determine if and what date the paperwork has been received in the UK and if it has been processed. If it has not been processed we are seeking the UK scheme’s position on the new rules.
5. We will contact all clients who have signed an engagement letter to transfer their funds.
6. If you are awaiting UK financial advice, or to receive a Statement of Advice we will be in contact with you.
7. If you are in the initial transfer quotation stage, or are considering a transfer then please ensure you check our website and newsletters for urgent updates. We will be back in contact as soon as possible with any current news.
Whilst news of this potential tax increase may be confusing, please be assured that we are working with the UK Pension Schemes to ensure compliance with the Legislation. As soon as we have received further clarification we will contact you.
Should you have any particular concerns regarding your pension transfer please do not hesitate to email email@example.com or telephone the office on 08 9233 9269.
Unfortunately the information contained in this letter is the only update we can provide at this time as we await further advice from the UK Schemes and the international tax specialist. We appreciate your patience and understanding