QROPS TRANSFERS

All working individuals in the UK contribute via Compulsory National Insurance Contributions for a basic State Pension. This can not be moved. Most other retirement monies (with certain exceptions like annuities in course of payment) can be moved.

Contributions to pension schemes are subject to "Annual Allowance" rules. The minimum age for benefits is 50 (increasing to 55 on 6 April 2010). 25% of the value of the Fund can be taken as tax free cash. Benefits are tested against a "Lifetime Allowance" with excess components subject to higher tax. In 2007/8 the limit is £1.6m (with various transitional arrangements).

All transfers of UK pension monies after 5 April 2006 are subject to QROPS requirements, i.e. a Qualifying Recognised Overseas Pension Scheme. Failure to transfer UK monies to a QROPS can result in a tax charge of up to 55%. The purpose is to ensure the monies are used for "authorised purposes". QROPS funds have to provide HM Revenue and Customs with information about payments/transfers for a period until the member has not been a tax resident in the UK for the current UK tax year and the previous 5 tax years.

A SMSF can become a QROPS. We can assist a SMSF to apply for QROPS status. Please see our Support Services page for the relevant form as well as information on how we can facilitate the transfer of monies to Australia.