Many people, that Global QROPS Ltd’s advisers speak to, are under the impression that a UK pension transfer to Australia has to completed within 6 months of the pension member’s arrival in Australia
Some people are not sure exactly why this is the case. The understanding varies from ‘if I do not complete a UK pension transfer to Australia in 6 months, I can not do it ever’ to ‘if I transfer my pension to Australia after 6 months, Australia will tax 50% of my fund.’
Neither of the above statements is true. The truth is that a UK pension transfer to Australia, completed 6 months after the member’s arrival, can be a bit more complicated but not necessarily detrimental to the member or the fund. Indeed, before you transfer your fund to Australia you should stop to consider if this is the correct thing to do.
Although Australia could impose a tax on any growth that your UK fund may have achieved, from the date of your arrival until the UK pension is transferred to Australia (after 6 months) this may be a small amount compared to the hit you could have taken on the £ to A$ exchange rate or early exit penalties from your UK scheme.
Global QROPS Ltd can offer unbiased, pre-migration advice as to whether a UK pension transfer to Australia is right thing to do, in the first place and, if it is, we can advise when it is the most appropriate time.