Qualifying Recognised Overseas Pension Scheme (QROPS)
In order to receive UK Pension Transfers an Australian Super Scheme must be approved as a Qualifying Recognised Overseas Pensions Scheme. (QROPS). Unfortunately, many Australian Super Funds are not QROPS approved and therefore can not accept a UK Pension Transfer. The good news is that if your Super Fund is not QROPS Qualified then it is a simple matter of setting up a new Super Fund that will allow the transfer to occur.
Important tax Issues
It is essential that you get your transfer right as you could be hit with a 55% UK Tax penalty if you get it wrong! When combined with the Australian 15% super tax charge then this results in a 70% tax paid on your transfer. If you exceed the Australian Super Contribution Caps, then there could be even more penalties! By using our service you are ensured that your transfer is done right the first time.
Large Balance Transfers
Transfers to Australia are restricted by Australian Superannuation Contributions Cap Limits. The maximum amount that can be contributed in any one year is $150K per year, however there is a provision to bring forward up to threes years worth in one year or $450K.
If structured right, then a total of $600 K can be transferred in a short period of time. Amounts larger than $450 K thus require progressive or partial transfers over a period of time and may involve the setting up of further pension funds in the Uk to hold funds during this process.
Large Balance Exchange Service
We now offer an additional service to provide substantial cost savings
on exchange rates for large balance transfers over 100,000 GBP. Not
only do you achieve savings on the standard bank exchange rate but you
can now have control over when you convert GBP to AUD to maximise or
lock in savings. Average savings are approx $3,000 GBP Minimum on the
first 200,000 GBP and increasing proportionally as the Transfer Balance
increases. Refer to our Separate Fact Sheet for Further Details.
Large Balance Exchange Service
Self Managed Super Funds
We can now set up Self Managed Super Funds for all types of investment
including property investment and for the purposes of receiving Overseas
Pension Funds. Property Investment Loans can also be provided through
our Home Loan Service.
If you have an existing SMSF we can also transfer funds directly into
it. Our Firm also can have your new or existing SMSF QROPS approved so
you can receive and self manage your UK Pension Funds.
QROPS INFORMATION FACT SHEET
Our UK Fact Sheet provides all the information on UK pensions and the QROPS Scheme:
World Pension Transfers QROPS FACT SHEET
QROPS LIST - RECOGNISED RECEIVING SUPER/PENSION SCHEMES
Any fund that has been granted HMRC approval through their QROPS scheme can accept UK Fund Transfers, including Industry Funds, Government Funds, Self Managed Super Funds and Retail Funds.
To find out if your super fund is a QROPS Approved Scheme check out the HMRC QROPS List:
HMRC QROPS List:
Please note that the name of your super fund may not show up on the list but still be an acceptable fund as some Super funds have several retail names. If in doubt contact us via the links below or call us to discuss.
If you fund is not an approved fund we can establish one for you at no additional cost to you. A list of our fund choices is included on with our UK Pension Transfer Forms.
Self Managed Super Funds in Australia (SMSF): Whilst Australian SMSF can accept UK Funds they must first apply to HMRC for QROPS Approval. Normally, the extra cost of setting this up within your SMSF, obtaining approval from HMRC and the additional administrative cost of having to now report to the HMRC for a period of 10 years negates any benefit in having the SMSF QROPS approved.
An alternative to this is simply to establish a new super fund and transfer funds into the SMSF once all HMRC requirements/restrictions have been fulfilled. You will need to discuss your options in relation to this with us.
TYPES OF UK FUNDS THAT CAN BE TRANSFERRED
Only Employer, Private and Self Managed Pension funds can be transferred.
Various UK Government Employee Schemes also exist which can be transferred such as those who served in the Armed Services, Royal Mail and Police Forces. If in doubt just ask.
The Basic State Pension (National Insurance Contributions) can not be transferred, however what is commonly called the Second State Pension (or contracted out pensions) can be transferred.
For example, those who work in the National Health Service (NHS) can still transfer their pension funds across even though it is a State Pension. If in doubt just ask us and we will confirm whether or not your Pension can be transferred.
5 - 6 YEAR RULE
Current UK rules restrict you to holding your funds within a recognised QROPS Fund for a period of 5 full UK Financial Years from the date of your departure from the UK. (April to April). Depending on when you departed the UK you may in fact have to wait nearly 6 years to fulfil the requirements of 5 full financial years.
If you withdraw or move your funds into a non QROPS fund within this time period then you will be subject to the above taxes. You can however, move the funds from one QROPS Fund to another QROPS fund without restrictions.
Once the 5-6 year rule is satisfied you can move your funds into any Australian Super Fund without restrictions.
For further information refer to our UK Pension Transfer Page
or contact us via our Contact Page.