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UK Pension Advice Sydney

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UK PENSION ADVICE SYDNEY

The key benefits of our UK pension Sydney planning are as follows:

No inheritance tax in Australia

Australian pension income is entirely free of tax from the age of 60

If you would like to arrange a free confidential telephone call to speak to one of our expert pension advisers about your UK pension arrangements, please get in touch:

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Many Brits are retiring abroad and with the fantastic sun, sand and sea on offer, together with a cheap healthcare provision and availability of an advantageous pension system, Australia remains a popular choice

Within Australia, Sydney remains the most preferred city for British expats, but one of the key questions for British pensioners moving to Sydney will be what to do with their UK pension.

There can be a range of options to consider!

However, there are two distinct advantages of the Australian pension system (referred to as the superannuation system) when compared to the UK's pension system:

 

  • Firstly, there is no inheritance tax in Australia. Whereas in the UK, there is a pension death tax which is now chargeable by reference to the recipient's marginal income tax rate (following reforms which removed the punitive 55% tax rate). However, Australian superannuation benefits may be left to spouses without any Australian tax being payable or left to the deceased's children at a rate of 15%.

 

  • Secondly, Australian pension income is entirely free of tax from the age of 60. Whereas in the UK, it is treated as earned income and fully assessable to income tax rates.

It may be advisable to transfer your UK pension into a Qualifying Recognised Overseas Pension Scheme (QROPS) in Australia.

Any pension transfers which do not go into a QROPS can result in punitive fines of up to 55% of the entire pension balance. However, it is essential to obtain UK pension advice, Sydney prior to implementing any pension transfer.

Any overseas transfer is tested against the value of your UK pension lifetime allowance (which is currently £1.25 million). Transfers into the Australian superannuation system within six months of taking residence will be free of any tax charge and a lump sum transfer of up to AUS $450,000 is allowed. Once you have been in Australia for more than six months, any increase in value of your pension since becoming resident, will be subject to a 15% contributions tax.

In the event that you decide Australia is not the place for your retirement and you return to the UK, you will be unable to access your pension until you meet a condition of release in Australia. Therefore, in cases where you are unsure how permanent your move down under will be, it may be preferable to leave your pension in the UK. 

There can be a number of issues to consider about your pension arrangements and we would always recommend you seek UK pension advice Sydney to consider all the possible options before embarking on any particular route.

Newshams Tax Advisers in Sydney

Newshams Tax Advisers in Sydney are experts at providing cutting edge UK pension advice for British expats living in Sydney.

THE NEXT STEPS

If you would like to schedule a FREE 30 minute consultation, please contact Newshams Tax Advisers, Sydney on 0424 466 355 or email us at enquiries@newshams.com to speak to one of our expert pension advisers about your UK pension arrangements.