Australian super funds still on UK radar
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.
Recommended for you
Licensee Centrepoint Alliance has completed the acquisition of Brighter Super’s annual review service advice book, via Financial Advice Matters.
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
