If you are over the age of 55 and would like to transfer your UK pension fund to Australia, the favoured option is to establish a Self Manager Super Fund (SMSF).
The main difference between an Australian SMSF and other retail superannuation funds is that the fund holders are the trustees. In other words, you run the fund yourself, for your own benefit.
For an SMSF to accept UK pension transfers the scheme needs to have attained QROPS status, and adhere to the requirements set by HMRC.
Setting up your SMSF
Running your own SMSF can be complex and the various regulations can be difficult to keep track of. Ultimately, the management of an SMSF is the responsibility of the trustees (i.e. you). That means we recommend seeking professional, expert advice from a company like bdhSterling to ensure your SMSF is structured and managed carefully.
Frequently Asked Questions
How do I set up a QROPS SMSF?
We offer a free initial appointment at bdhSterling. Then, once you have received and agreed to the Australian advice regarding your UK pension transfer, we will help you with every aspect of your SMSF. This includes:
- Preparing all documentation for the new fund
- Identifying the Corporate Trustee (if required)
- Applying for your Australian Business Number (ABN) and Tax File Number (TFN)
- Organising all bank accounts (including GBP deposit account for direct transfers)
- Applying for QROPS via HMRC
- Registering the fund with the ATO
- Submitting all ATO compliance relating to tax liabilities on the transfer
How much do I need to transfer for a SMSF to be worthwhile?
Generally, the higher the value of your SMSF, the more beneficial they become. This is because of the fixed costs you will incur in order to establish and manage your SMSF.
We recommend that you only consider this type of fund if you have more than $250,000 (AUD) in retirement savings while still adding to the fund. And we suggest having over $350,000 if you are retired.
There are alternative, cost effective solutions, that we can recommend for those with lower balances.
To discuss the transfer of your UK pension to a SMSF, contact bdhSterling to benefit from our expertise and guidance. Click here for details.