Paul scouller Posted March 19, 2020 Share Posted March 19, 2020 I have been in Australia for 10yrs i am 56 yrs old and have the opportunity to withdraw 25% tax free lump sum from my uk pension what are the tax implications Quote Link to comment Share on other sites More sharing options...
Marisawright Posted March 19, 2020 Share Posted March 19, 2020 (edited) 14 minutes ago, Paul scouller said: I have been in Australia for 10yrs i am 56 yrs old and have the opportunity to withdraw 25% tax free lump sum from my uk pension what are the tax implications You will have to declare it as income on your Australian tax return. I suggest getting professional advice, but the likelihood is that you'll lose a big chunk of it to the Australian tax man. You may lose less in tax if you take it as an ongoing pension rather than a lump sum. Edited March 19, 2020 by Marisawright 1 Quote Link to comment Share on other sites More sharing options...
rammygirl Posted March 19, 2020 Share Posted March 19, 2020 The tax should be applicable only on the growth of the pension since you became an Aus resident. There are tax implications in Aus and also ways to legitimately reduce these. You need an accountant who understands the implications otherwise you will pay too much tax. 1 Quote Link to comment Share on other sites More sharing options...
Andrew from Vista Financial Posted March 20, 2020 Share Posted March 20, 2020 (edited) Hello Paul The tax implications in Australia as rammygirl points out above will broadly be based on the growth since you arrived however there is a difference to this in terms of how the growth is considered and how much of the lump sum is assessable depending on whether your scheme is defined contribution (market linked) or defined benefit (salary linked). Your other option perhaps is to consider a transfer to an Australian (QROPS) Super Fund (tax is still payable on the growth but may be able to be mitigated) and then draw from age 60 tax free (obviously not going to work if you need the money now). Hope this helps. Andy Edited March 20, 2020 by Andrew from Vista Financial Quote Link to comment Share on other sites More sharing options...
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