Australian Superannuation Funds have issued a warning to people wishing to transfer their UK Pension Funds to Australia that they could trigger substantial tax penalties.
This is due to April 6, 2015 changes in UK tax law which favour Pension Fund transfers to Superannuation Funds which restrict access to funds for people under age 55 – unless the Member retires due to ill health.
Many Superannuation Funds in Australia allow access to Superannuation monies prior to age 55, in the event of financial hardship.
UK Pension Funds which are transferred to funds that allow this “early access” will trigger a 55% tax levy on the outgoing UK funds.
Australian Superannuation Funds and the Financial Services Council are working together to seek an exemption from the UK tax authority (HM Revenue and Customs – HMRC) for Australian Superannuation Funds.
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