So you are shifting to Australia? Well, great but before you stress about moving your UK pension, here are a few things that you should know prior to executing any decision. Consider all the factors regarding your fiscal as well as social prosperity along with thinking about your pension scheme, searching home, and even employment. Well, go through the followings once and you will understand this entire concept…
How to Move a UK pension?
The pension industry in the UK and Australia are amazingly developed and the moment you have your pension ready to be moved, it is a simple procedure where both the parties ensure the transfer of pension fund and other necessities.
There are several tax implications that one must consider with assessing the pension funds and moving that to Australia, this entails…
- Six Month Transfer Period: You are given about six months during which you transfer your pension from the UK to Australia upon landing your feet in Australia. You need to understand that any kind of increase or boost in the value of your pension fund from the day you enter Australia will not draw any add-on taxes.
- Maintenance of a UK pension: You need to understand that the pension fund that you will be receiving from the United Kingdom will be considered as the earned income in Australia and hence, will be taxed as per that. You will be looking forward to maintaining your UK pension fund instead of transferring your assets to Australia.
- State Pension: Since you will not be receiving your UK state pension in this country, any income will be treated as your earned income and therefore will be put on your taxes. You might not be aware of it, both of the countries have double taxation agreement between them, this means, you don’t have to pay tax in the UK and Australia regarding your pension fund.
Take Expert Guidance
Pension Fund Industry goes through constant change which makes it difficult for one to keep a follow-up or understand the procedures in this sector. Hence, it is imperative for you all to seek professional guidance at the earliest stage to make sure that you are taking all the right steps.
Well, for more informative content, stay tuned with Joe Madrajat blogs…