We understand that financial planning can be complex, and it's natural to have plenty of questions. We've answered some of the more common ones we tend to asked below.
bdhSterling is fully regulated in both the UK and Australia:
UK: Our advice and firm are regulated by the Financial Conduct Authority (FCA).
Australia: Our Australian firm is authorised by the Australian Securities and Investments Commission (ASIC).
Yes, some of our financial planners are dually licensed, allowing them to provide advice across both jurisdictions. The license details are below:
UK: All of our UK qualified Financial Advisers are authorised and regulated by the Financial Conduct Authority (FCA). Registration Number: 499460.
Australia: bdhSterling Pty is a Corporate Authorised Representative (462704) of bdhSterling AFSL Pty Ltd, which holds an Australian Financial Services Licensee (AFSL number 222266).
Yes! We offer a free initial consultation, either in person, by phone, or via video call, to discuss your financial goals and how we can help.
Your initial meeting is free. If you choose to proceed, charges apply for:
– Your financial planning report
– Implementation of any recommendations
– Ongoing advice and support
Fees vary based on your individual circumstances and will be fully disclosed before any work begins.
We’d love to meet you in person at one of our offices or a location convenient for you. Alternatively, we can arrange a video call.
Yes. We believe successful financial planning is built on a long-term relationship between you and your Financial Planner.
bdhSterling is the only UK Chartered firm with offices in both the UK and Australia, offering specialist cross-border financial advice.
Yes, bdhSterling can help with most UK pension transfers to Australian superannuation funds. However, there are eligibility criteria you must meet, and the receiving fund must be a Qualifying Recognised Overseas Pension Scheme (QROPS).
Read on to find out about the eligibility or download our Pension Transfer Guide
Yes – you cannot transfer your UK pension directly to Australia if any of the following apply:
– You’re under age 55 (rising to 57 in 2028)
– Your crystallised pension balance exceeds the non-concessional contribution cap
– You exceed the total superannuation balance cap
– You’re over age 75
Current contribution limits allow:
– Up to $120,000 AUD per year as Non-Concessional Contributions (NCC)
– Up to $360,000 AUD over three years using the bring-forward rule
– Additional Applicable Fund Earnings (AFE) may also be transferred, depending on your circumstances
Our five-step transfer process makes it simple to transfer your pension:
1. Book a free initial meeting with one of our advisers
2. Discuss your options in a consultation
3. Engage us for a detailed Pension Transfer Analysis and Strategy Report
4. Receive your Strategy Report outlining tailored recommendations
5. Engage us. If a transfer is recommended and accepted, we will manage the entire process for you.
You can transfer the following UK pensions to Australia (subject to eligibility and QROPS rules):
• Defined Contribution (DC) schemes – including company pensions, personal pensions, and drawdown arrangements
• Private sector Defined Benefit (DB) schemes
• Funded public sector DB schemes
You cannot transfer:
• The UK State Pension
• Annuities purchased from a life insurance company
• Company pensions already in payment
• Unfunded public sector DB schemes, such as NHS or Armed Forces pensions
Transferring your UK pension to Australia can offer significant advantages if you plan to retire there:
• Tax-free retirement income: In Australia, superannuation income and lump sums are generally tax-free from age 60, unlike the UK where pension income is taxed at your marginal rate.
• Simplified management: Keeping your pension locally can make administration easier.
• Currency stability: Converting to AUD reduces exposure to exchange rate fluctuations during retirement.
• Lower transfer costs: Avoid ongoing international transfer fees when drawing income from a UK pension.
• Better succession planning: Australian superannuation rules often provide more flexibility for passing on benefits compared to UK pensions, which may be taxed or restricted on death.
We will only recommend a transfer if we believe it is the most suitable option and in your best interests.
Yes. You must be at least 55 years old (rising to 57 in 2028) to transfer your UK pension to Australia.
If you’re under 55, it’s still worth seeking advice early, as there may be opportunities to optimise your UK pension in the meantime, such as investing in AUD.
No, transfers are not permitted until age 55. However, early planning can help you prepare for future opportunities and explore investment strategies.
The minimum age for UK pension transfers to Australia will increase from 55 to 57 in 2028.
In most cases, you cannot transfer a UK pension to Australia once you’ve started drawing from it, especially if:
• You’ve purchased an annuity
• You’re receiving income from a Defined Benefit (DB) scheme already in payment
• Your pension is part of an unfunded public sector scheme (e.g., NHS, Teachers’, Armed Forces)
However, if you’re drawing from a Defined Contribution (DC) pension using flexi-access drawdown, a transfer may still be possible depending on your scheme and age. Personalised advice is important, as eligibility depends on your specific circumstances.
QROPS stands for Qualifying Recognised Overseas Pension Scheme – an overseas pension scheme that HM Revenue & Customs (HMRC) recognises as eligible to receive transfers from a UK-registered pension scheme.
Without QROPS status, an overseas scheme cannot accept a UK pension transfer.
If you are a permanent resident of Australia and aged 55 or over, you may be eligible to transfer your UK pension funds into an Australian QROPS.
A QROPS is a ‘Qualifying Recognised Overseas Pension Scheme – an overseas pension scheme that HMRC has authorised, into which (subject to eligibility) you can transfer your UK pension assets. This enables you to access your retirement funds under the local tax rules of your country of residence, such as Australia.
Yes. Under UK Financial Conduct Authority (FCA) rules, if your UK pension is valued at £30,000 or more, you must obtain regulated financial advice before transferring it to a QROPS.
Yes. Once your UK pension is transferred to a QROPS, you can draw down funds in line with Australian superannuation rules, typically from age 60. In most cases, income is tax-free once you’re over age 60.
Most QROPS allow you to nominate beneficiaries. When you pass away, the remaining pension funds are usually paid to your chosen beneficiaries as a lump sum or as an income, depending on the scheme’s rules.
There may be tax and IHT considerations that will vary based on your individual circumstances, and different QROPS may have different rules. To ensure your retirement savings are passed on in the most efficient way, we recommend seeking professional advice and creating a plan tailored to your goals. Contact us today to discuss your options.
It depends. There are circumstances where tax may be due on specific payments.
Tax treatment varies widely based on your individual circumstances, so this is a complex area.
For personalised guidance, we recommend speaking to one of our advisers.
The Overseas Transfer Charge (OTC) is a 25% tax applied when transferring UK pension benefits to a country where you are not a resident.
When you move to Australia, you can transfer your UK pension to Australia without incurring this OTC.
However, if you move to another country within five UK tax years of the transfer, the charge will apply.
Tax treatment depends on the phase of your superannuation:
• Accumulation phase: Investment earnings are generally taxed at a maximum of 15%.
• Retirement phase: Earnings are tax-free, provided your balance is within the transfer balance cap (a lifetime limit set by the government).
In simple terms, tax may apply while you’re still building your retirement savings, but once you move into retirement phase, earnings are usually tax-free, subject to the government limits.
The UK and Australia have a Double Taxation Agreement (DTA) to prevent the same income being taxed twice, with the tax rights being in the country you reside in, or tax resident in.
However, lump sums may be subject to tax in both countries, depending on your circumstances. Professional advice is essential to ensure compliance and minimise tax.
Not entirely. From April 2027, UK pensions will form part of your estate for IHT purposes.
Any UK assets, including UK pensions and Australian QROPS, may be liable for UK IHT.
Once you are no longer deemed a UK long-term resident, an Australian QROPS will generally not be subject to UK IHT.
From April 2027, any funds remaining in your pension at death will be included in your estate for IHT purposes and taxed at 40% if the value exceeds the threshold.
If you’re an Australian resident at the time of death (after age 75), beneficiaries also living in Australia will pay Income Tax on amounts drawn from inherited pensions at their marginal rate.
If taken as a lump sum, tax applies only to growth from the date you arrived in Australia to the date of death.
The maximum amount you can transfer to a QROPS (Qualifying Recognised Overseas Pension Scheme) is determined by your ‘Overseas Transfer Allowance’ (OTA).
• For the 2024/25 UK tax year, the OTA is £1,073,100.
• Please be aware, that any amount above this allowance may incur a 25% tax charge.
Australian rules limit how much you can contribute, or transfer, to a super fund in a single tax year.
• Annual Non-Concessional Contribution (NCC) cap: AUD $120,000 (as of July 2024).
• Bring-Forward provisions: You may be able to use the next two years’ caps, allowing contributions up to AUD $360,000 over three years.
This means large UK pension transfers often need to be phased over multiple years.
A Self-Managed Super Fund (SMSF) is a private superannuation fund where you act as the trustee, giving you full control over your retirement investments.
• To transfer a UK pension, the SMSF must be registered as a QROPS with HMRC.
• This option is popular for those wanting flexibility and control over their retirement savings.
Yes. The Australian Expatriate Superannuation Fund (AESF) is currently the only retail super fund in Australia listed on the HMRC QROPS register and publicly accepting UK pension transfers.
Yes, if the receiving fund is a Self-Managed Super Fund (SMSF), you can consolidate your existing Australian super into it.
However, if the receiving fund is the retail option, consolidation of your existing Australian super into that fund is not permitted.
The process typically takes 3 to 12 months, with an average of 6 months from your first contact with bdhSterling to the transfer of funds into your QROPS.
Timing depends on several external factors, including how long your UK pension scheme takes to disinvest funds and transfer these to your receiving scheme.
bdhSterling provides transparent fees, disclosed upfront before any work begins. Fees include:
• Pension Transfer Analysis Report (PTAR)
• Implementation costs
• Ongoing advice fees, where necessary
• Establishment costs and potential statement of advice fees
This ensures you can assess the cost vs benefits before proceeding.
Our fees vary depending on the nature and complexity of the service provided. We charge flat fees for advice preparation and implementation. For our other services, our fees may include percentage-based fees, hourly rate fees and commissions paid by insurers may apply for insurance products.
Yes. If the pension value is relatively small, the costs and tax implications of transferring to Australia may outweigh the benefits. A pension transfer is often not worthwhile for low balances, however we assess these factors as part of our advice to determine whether a transfer is in your best interests. Please contact us to book a free initial consultation.
If you move from Australia within five UK tax years after transferring your pension, you could face a 25% Overseas Transfer Charge (OTC). Additionally, your pension may be subject to different tax rules in your new country.
A Pension Transfer Analysis Report (PTAR) is a detailed assessment of your existing pensions and financial situation. At bdhSterling, we use this report to outline our tailored recommendations regarding your pension transfer and if it is suitable.
Yes. bdhSterling are dual-licensed in the UK and Australia, with internal advisers licensed in both the UK and Australia who specialise in UK pension transfers.
To start your UK-to-Australia pension transfer, book a free initial consultation with bdhSterling. We’ll explain your options and guide you through the process step by step.
Required documents depend on your personal circumstances and the advice you seek. At a minimum, we will need information to understand your financial situation, goals, and objectives.
This typically includes details of your assets and liabilities, such as (but not limited to) your pension and superannuation balances. We’ll confirm the exact documents after reviewing your situation.
No, a UK pension transfer to Australia (e.g., via QROPS) cannot be reversed. If you later move to another country, your pension may face different tax rules and possible UK charges like the Overseas Transfer Charge (OTC).
While we will only recommend transferring your pension to Australia if you intend to retire here, we understand that life circumstances can change. If this happens, we can support you in managing financial and tax complexities. This may include preparing a UK withdrawal report, planning withdrawals from your Australian superannuation before leaving, or other strategies tailored to your situation.
Yes. bdhSterling does provide specialist support for transferring UK pensions to New Zealand, including QROPS solutions and comprehensive planning tailored to expats.
Yes, you can access your Australian superannuation from overseas, but only if you meet a condition of release.
Generally, if you were a temporary resident, your super may be accessed as a Departing Australia Superannuation Payment (DASP).
If you were a permanent resident or an Australian citizen, you will need to meet a standard condition of release, such as reaching your preservation age or retiring, before accessing your super.
You can withdraw your super when you turn 65, even if you’re still working.
If you retire before 65, you can access your super once you reach your ‘preservation age’, which is currently 60.
No, you don’t have to be retired if you’re 65 or older—you can still access your super while working.
If you’re under 65, you’ll need to retire and have reached your preservation age (currently 60) to withdraw your super.
Yes, you can access a lump sum from your Australian superannuation while living in the UK, provided you meet the conditions of release. Keep in mind that this may have tax consequences.
Yes. For UK tax residents, Australian superannuation income is generally fully taxable in the UK, except in certain circumstances.
However, it is possible to extract lump sums tax-efficiently and then put together an investment portfolio from which you can draw income as tax-efficiently as possible.
For UK tax residents, Australian superannuation income is fully taxable in the UK except in certain circumstances. That said, it’s possible to extract lump sums from your Australian super in a very tax-efficient manner, and then put together an investment portfolio from which you can draw income as tax-efficiently as possible.
Yes. For UK tax residents, Australian superannuation income will be fully taxable in the UK (except in certain circumstances). However, it is possible to extract lump sums from your Australian super in a very tax-efficient manner, and then create an investment portfolio from which you can draw income as tax-efficiently as possible.
Yes. Australia and the UK have a Double Taxation Agreement (DTA), which helps prevent the same income from being taxed twice.
This agreement ensures that you won’t pay tax on the same income in both countries.
No, Australian superannuation funds cannot be transferred to a UK pension.
However, we can help you arrange withdrawals strategically to manage tax liabilities and optimise your retirement planning.
You cannot directly combine Australian superannuation with a UK pension, as transfers are not permitted.
Instead, we can support you with arranging withdrawals to ensure the tax liabilities are managed.
There is no one-size-fits-all approach. The most appropriate strategy will depend on factors such as:
– Your age
– Your tax residency
– Your income needs
– Your long-term financial goals
There are a range of options available, and we can help you assess these – determining the most suitable strategy for your personal situation and taking into account both Australian and UK tax considerations.
Yes. ISAs lose their tax-efficient status once you become a permanent Australian resident.
You’ll need to declare ISAs on your annual tax return to the ATO, and tax will apply to any profit based on the increase in value from the date you became an Australian resident to the date you sell the investment.
If you’re a permanent Australian resident, you need to declare ISAs and General Investment Accounts (GIAs) on your annual tax return to the ATO as if they were Australian investments.
Tax is charged on any profit you have made based on the increase in value between the date you became an Australian resident and the date of the sale of the investment.
Yes. You should submit a P85 form when leaving the UK permanently. This informs HMRC of your departure, ensures correct taxation, and allows you to claim any potential tax refund.
Your UK tax residency for the year you move is determined by the Statutory Residence Test.
You can view the official flowchart here:
The UK–Australia Double Taxation Agreement (DTA) prevents the same income from being taxed twice by allocating taxing rights and providing mechanisms for relief. This is primarily through the Foreign Income Tax Offset (FITO) system in Australia or by exempting certain income in the UK. The specific rules depend on a person’s tax residency status and the type of income involved.
Under the residency-based system introduced in April 2025, you will be liable for UK Inheritance tax on your Worldwide assets if you are deemed a UK Long term resident. If you are deemed a non-UK long term resident, you are only liable for IHT on any UK assets
For example, someone who has been in the UK for 20 years and leaves after April 2024 will remain a UK long term resident for 10 tax years after departure. If they were resident for less years then the ‘tail’ period then transitory rules will apply.
Australia: Inheritance laws are state-based and can differ by location of the deceased. Superannuation is usually distributed according to beneficiary nominations rather than the will.
UK: Laws are nationally uniform, and estates may be subject to Inheritance Tax.
Tax treatment differs significantly: inheritance is generally not taxed in Australia, while UK estates may face IHT. Cross-border situations can create additional complexities.
Emigrating to Australia is an exciting adventure and getting your finances in order is essential for a smooth, successful move. Download our Financial Emigration Checklist guide now and start planning your move with confidence
UK expats have access to a wide range of investment options, including:
– Shares
– Managed funds
– ETFs
– Term deposits
Options are available in both GBP (£) and AUD ($).
The most suitable options will depend on your personal circumstances, including your risk profile, retirement goals, and investment timeline. bdhSterling can help determine the most appropriate options for your personal circumstances and financial goals.
The information on this page is general in nature. It does not take into account your specific circumstances and should not be acted on without full understanding of your current financial situation, future goals and objectives by a fully qualified financial adviser. In doing so, you risk making commitment to a product and / or strategy that may not be suitable to your needs. Information correct as of 01/01/2026
