UK Pension Transfers to Australia
Your UK pension doesn’t have to stay in the UK
If you previously lived or worked in the UK, you may have accumulated a UK pension that you are now considering transferring to Australia.
For Australian residents, transferring a UK pension can be a complex process involving UK pension legislation, HMRC requirements, Australian superannuation rules and Australian tax considerations.
At Veyron Wealth Group, we have been helping UK migrants and returning Australians assess and transfer UK pensions to Australia since 2002.
Our role is not simply to arrange a transfer. We first assess whether transferring your UK pension is appropriate for you, what you may be giving up by leaving it in the UK, and how the transfer could fit into your broader retirement strategy.
Could your UK pension be transferred to Australia?
Potentially, yes.
The ability to transfer depends on the type of UK pension you hold, your age, your residency, the value of your pension and the requirements of the receiving Australian superannuation arrangement.
Depending on your circumstances, we can assist with:
- UK defined benefit and final salary pensions
- UK personal and defined contribution pensions
- Self-Invested Personal Pensions (SIPPs)
- eligible pensions already in payment in certain circumstances
- transfers to an Australian HMRC-recognised QROPS
- UK pensions where you are under age 55 and need an interim strategy
Not all UK pensions can be transferred to Australia.
For example, certain unfunded UK public service pensions cannot be transferred overseas, while the UK State Pension cannot be transferred as a lump sum to Australian superannuation.
See our Eligible Funds page for more information.
The first question: should you transfer?
Transferring a UK pension is not automatically the right decision.
Before recommending a transfer, we consider the advantages and disadvantages of both options:
Keep the pension in the UK
versus
Transfer the pension to Australia
This can include comparing:
- the benefits available from your existing UK pension;
- any guaranteed or defined benefits you may be giving up;
- the potential retirement income available under each option;
- UK and Australian taxation;
- investment options and costs;
- currency considerations;
- your retirement objectives;
- your residency and future plans; and
- the implications for your estate and family.
Our objective is to help you make an informed decision based on your circumstances, rather than assuming that transferring is automatically the best option.
Understanding the QROPS requirement
If you are transferring a UK pension to an overseas pension scheme, the receiving scheme generally needs to be a Qualifying Recognised Overseas Pension Scheme (QROPS).
HMRC maintains a list of schemes that have notified HMRC that they meet the QROPS requirements. However, being included on the HMRC list does not itself guarantee that a particular transfer will be free of UK tax. The tax treatment depends on the circumstances of the individual and the transfer.
For an Australian resident transferring to an Australian QROPS, the UK Overseas Transfer Charge can generally be avoided where the relevant conditions are satisfied, including that you are resident in Australia and the transfer is within your available Overseas Transfer Allowance.
Understanding these rules is an important part of determining whether a transfer is appropriate.
Learn more about QROPS
“Drew Hawkins is one of Australias most experienced advises with regard to UK pensions transfers to Australia with over 24 years experience”
David Ford – Founder & CEO of Pension Transfers Direct Pty Ltd
★★★★★ 5/5
