Services – Uk Pension Transfers
If you are aged 55 or over, then you may well be fortunate enough to be entitled to transfer your UK pensions directly to Australia. This will need to be managed using a QROPS fund to avoid huge tax penalties.
– Simon Harding
UK & Australian Certified Financial Planner®
UK Pensions advice for those now resident in Australia can clearly be separated between the over 55 year olds and the under 55s. This is because in order to meet the UK’s HMRC rules to register as a Qualifying Recognised Overseas Pension Scheme (QROPS) and therefore allow a transfer of UK funds overseas, the membership of the fund must be only allowable for those aged 55 or over.
We will manage the entire process for you, ensuring your best interests are being met at all times.
UK pension transfer to Australia advice, based on knowledge and relevant qualifications not a persuasive sales pitch with the "right" accent
Clear, well-defined and ethical advice around their UK pension options
Advice from a planner with the requisite UK qualifications and holds Certified Financial Planner status in the UK and in Australia
Advice for clients with balances over the non-concessional contribution cap (currently $360,000) that possibly cannot transfer all of their funds to Australia in one movement or do not wish to donate to the ATO
Consolidation of multiple funds in the UK prior to transferring
Australian based Investment portfolios in GBP or AUD depending on your preference
We provide you with access to an SMSF with QROPS status to allow you to have your UK pension fund transferred to Australia.
Transferring Your UK Pension to Australia: What You Need to Know About Contribution Limits
If you’re a UK expat living in Australia, transferring your UK pension to an Australian superannuation fund is one of the most significant financial decisions you’ll make. Understanding how Australian tax law treats that transfer — and the thresholds that apply — is essential before you act.
Your UK Pension Is Treated as a New Contribution
The Australian Taxation Office (ATO) does not recognise a UK pension transfer as a simple rollover of existing retirement savings. Instead, it is treated as a new contribution to your Australian superannuation fund, which means it falls under the rules governing non-concessional contributions (NCCs). This distinction has significant implications depending on the value of your fund.
The $360,000 Threshold
Currently, eligible individuals may contribute up to $120,000 per financial year in non-concessional contributions. By utilising the bring-forward rule, you may be able to contribute up to $360,000 in a single transaction — provided you have not previously used any of your NCC cap and retain full bring-forward eligibility.
For UK pension funds valued at or below approximately $360,000 at the date you became an Australian tax resident, this threshold may accommodate your transfer without triggering excess contributions tax.
When Your Fund Exceeds $360,000
Where your UK pension fund exceeded the equivalent of $360,000 at the date you became an Australian tax resident, the position becomes more complex. The portion above this threshold will have its own tax treatment, which varies depending on individual circumstances including your residency history, the nature of your UK pension, and your superannuation balance in Australia.
This is precisely where specialist advice becomes critical. The interaction between UK pension taxation, Australian contribution rules, and superannuation tax components requires careful analysis to ensure your transfer is structured in the most tax-effective way possible.
Age Restrictions Apply
Non-concessional contribution eligibility rules include age restrictions. If you are approaching age 75, it is important that you seek advice as early as possible, as your contribution window may be limited.
Why Specialist Advice Matters
A UK pension transfer to Australia sits at the intersection of two complex tax systems. Getting it wrong can result in unnecessary tax, penalties, or a structure that doesn’t serve your long-term retirement goals. At Harding Wealth Management, we specialise in exactly this area — helping UK expats navigate the transfer process and establish an investment strategy that works across both jurisdictions.
If you’d like to understand how these rules apply to your specific situation, contact us for an obligation-free conversation.
Some of the more specific areas include;
If completed correctly and in accordance with UK regulations, there should be no UK tax involved in a transfer to QROPS.
From an Australian perspective, if you transfer your UK pension transfer to Australia after 6 months of tax residency there may be an Australian tax consequence in doing so.
You may be liable for tax on the difference in your fund value on the day you became an Australian resident and the day the funds are received in your Australian QROPS fund. This is called Applicable Fund Earnings.
This tax can either be added to your personal income and taxed at your marginal rate or taxed within the super fund at 15%, whichever is your personal preference.
There is a strict procedure and series of requirements to meet to ensure your fund pays the 15% tax rather than you, at your marginal rate.
When calculating the tax due on transfer, you will need to know the value of the fund on the day you arrived in Australia (or became a tax resident if this differs).
This can be achieved either by asking the UK pension fund for a valuation on a specific date, engaging an actuarial service or by using a discount methodology, as supported by legal precedent.
One of the key advantages of working with us is that we can connect you with the correct independent professional to provide a tax calculation service. This ensures your figures are professionally assessed and clearly documented. Ultimately, as it is you signing the Tax Declaration, you need to be confident that the information provided is accurate and fully supported if ever audited by the ATO.
Most Australian schemes which are established to receive pensions from the UK are SMSFs. This is because standard retail funds lost their QROPS status in April 2015 by allowing membership for the under 55s. Therefore to gain new QROPS status the super fund must agree to only allow membership for over 55s. As an early adopter of this rule, we have access to the correct Corporate Trust Deed using Self Managed Super Funds (SMSF).
We are qualified to provide this service and also to assist you to understand the investment restrictions of a QROPS.
The main advantages of an SMSF are:
The main disadvantages of an SMSF are:
There is currently only one retail QROPS fund available in Australia. As part of our advice process, we will explain the differences including advantages and disadvantages of investing in either a QROPS compliant SMSF or the new retail fund. There are clear advantages for each option and our advice will be specific to your personal circumstances and objectives.
The main advantages of a retail QROPS are:
The main disadvantages of a retail QROPS are:
Working With Us
To ensure we deliver the best value and can focus on delivering highly personalised advice, our services are available to clients aged 55 or over, with total retirement assets (UK pensions and Australian Super) of $700,000 or more. If you meet this requirement, we’d be delighted to discuss how we can help you achieve your financial goals.
If you feel you would benefit from an initial introductory video call we would be delighted to provide you with a brief 30 minute MS Teams or Zoom meeting. Please ensure you meet our eligibility requirements and we can discover whether we are a perfect fit for you.
