UK based advisers, Global QROPS Ltd, specialise in advising people migrating to Australia the best course of action for their finances – including advising on a UK pension transfer to Australia.
Many people decide, when migrating, that they want to make a clean break from the UK. This would include, not just transferring their UK pension to Australia, but cashing in, selling or dissolving many of their other assets.
In many cases Global QROPS Ltd agree that this could be the right thing to do, however, advice would need to be taken before any decisions are made in order to avoid any potential financial loss.
For example, someone may come to Global QROPS Ltd who is considering cashing in their endowment. There may be tax issues in holding the endowment in the UK once they arrive in Australia – because of the Foreign Investment Fund (FIF) tax rules – and therefore may think that they should cash it in. What an individual may want to look at, before doing this, are factors such as early surrender penalties in the endowment, the life cover that is provided and any terminal bonus that might be lost on cashing in early. Would the potential tax payable be higher than providing replacement life cover in Australia, for instance?
On top of this, a client may not be aware that their visa could exempt them from FIF tax or that their combined assets fall below the exemption. Global QROPS Ltd emphasises that advice is not just about a pension transfer to Australia but other considerations as well.