David Shirlow
The United Kingdom Government has removed doubt as to whether Australian superannuation funds will continue to qualify for receiving transfers of UK benefits after the new superannuation tax rules are implemented in Australia on July 1.
Macquarie Adviser Services head of technical David Shirlow was advised by Her Majesty’s Revenue and Customs that UK law would be amended so that Australian Qualifying Recognised Overseas Pension Schemes (QROPS) will continue to meet the criteria to receive the UK tax-free transfers.
“In other words, those Australian pension schemes which are on the UK register of QROPS on June 30 will not be removed from the list because of the changes to the Australian superannuation tax system,” he explained.
“Of course, besides UK tax law, relevant clients will need to have regard to a range of factors, including Australian tax laws and the new contribution limits, in deciding when or whether to transfer UK superannuation benefits to an Australian fund.”
There was concern that changes to the tax treatment of Australian superannuation benefits would affect the nation’s QROPS status, as one of the conditions to qualify relates to the nature of the tax system in the receiving fund’s country.
