New laws make UK pension transfers lucrative
Andrew Lowe
Australian permanent residents looking to transfer pension assets from the UK can receive the double benefit of new transfer laws passed overseas and new Australian superannuation laws introduced in the most recent Federal Budget, according to superannuation provider ING.
But ING warned the transfer must be made to a domestic super fund that has been registered as a Qualifying Recognised Overseas Pension Scheme (QROPS) with UK Revenue and Customs.
The financial services company said the consequences of transferring to a non-registered fund could mean consumers attract a tax levied at 55 per cent on the funds being transferred.
In response to the legislative changes, ING has secured QROPS status for of its major superannuation funds.
ING head of research and technical services Andrew Lowe felt people who have moved from the UK to Australia could reap some handsome rewards through correct transfers.
“They will not only benefit from the super tax reforms announced in the May Budget, but by consolidating their assets in an Australian fund they will be better able to control their investments and access the wider investment choices generally available in Australian superannuation funds,” he said.
However, Lowe stressed the importance of receiving qualified financial advice before any such transfer is undertaken.
“Depending on the nature of the assets, UK fund and residency requirements, the transfer can be somewhat complex and take a number of months, so it pays to see a financial adviser who understands the rules and can facilitate the whole process,” he said.
ING’s move to register its super products with UK Revenue and Customs follows that of BT Financial Group, which announced late last month that its retirement wrap fund, SuperWrap, had been granted QROPS standing.
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