Moving a UK pension to Australian is fairly simple in theory but there are many things to consider before putting your plan into action. Even though your pension scheme may well be the last thing on your mind when moving to a new country, looking for a home and looking for employment, you need to consider all aspects of your financial and social well-being.

How to move a UK pension to Australia

The pensions industry in the UK and the pensions industry in Australia are very well developed and once you have your pension fund ready to move it is simply a case of ensuring that both parties talk to each other and necessitates the transfer of funds. However, you need to consider other suspects before giving the final go-ahead.

Tax implications

There are a number of tax implications to consider with regards to pension funds and moving in a UK pension to Australia which include:-

Six month transfer period

Upon landing in Australia and obtaining the relevant residency for tax purposes you be given six months to transfer your pension funds from the UK to Australia. During that time any increase in the value of your funds from the day you stepped foot in Australia will not attract any additional taxes. However, if you leave your pension fund transfer longer than six months after stepping foot in Australia then the authorities will calculate the value of your funds on the day you moved to Australia and the date it was eventually transferred, then you will be taxed on the difference.

Maintaining a UK pension

There may be some reasons why you would look to maintain a UK pension rather than transfer your assets to Australia. If you receive any pension income from the UK in the future this will be treated as earned income in Australia and taxed accordingly. You may wish to maintain a UK pension if for example you have guarantees which cannot be transferred or other benefits which could disappear upon transfer.

State pension

You will not be able to transfer your UK state pension to Australia therefore any pension income received will again be treated as earned income and taxed accordingly. There is a double taxation agreement between the UK and Australia which effectively means you do not pay tax in both countries on your pension fund income.

Taking professional advice

The pensions fund industry is one which changes on a regular basis and can be very difficult to follow and understand unless you have in-depth knowledge of the sector. Therefore it is vital that you take professional advice at the earliest opportunity to ensure you are doing the right thing in the short-term, medium-term and long-term.

Conclusion

When looking to move overseas you should consider all aspects of your financial and social life including your pension fund arrangements. Do not leave it too late to transfer your pensions as you may well attract an unwelcome tax charge from the Austrian authorities which could run into potentially thousands and thousands of dollars. Plan ahead and plan carefully.Moving a UK pension to Australia is simple in theory but a little more difficult in practice.  Let us help you?