Pension Schemes transferred to Australia
HMRC have issued a Pension Schemes newsletter in relation to qualifying recognised overseas pension schemes (QROPS). The newsletter specifically concerns the implications where a UK registered pension scheme moves to an Australian QROPS.
Pension Schemes have been asking whether the payment by a QROPS of Australian tax charges will make the transferring individual liable to an unauthorised payment charge. HRMC have been liaising with the Australian Tax Office to check how the Australian and UK taxation systems interact. The specific guidance that has been prepared refers to transfers of UK tax-relieved funds made from overseas pension schemes that are not registered in the UK.
Individuals whose pension funds move to Australia need to be aware of the implications of unauthorised payments charges and the related requirements when submitting self-assessment returns in the UK.