When HMRC removed all but one Australian QROPS, they did it in a manner that left a number of transfers in the system and arriving post 6th April, 2015. This left these people with the worry that HMRC would impose a tax charge for an “unauthorised transfer” – especially if they had not been out of the UK for five full UK tax years. I understand that the HMRC have now confirmed that no tax will be charged in respect of QROPS transfers made between 6th April, 2015 and 30th June, 2015 provided the Australian receiving superannuation fund was on the QROPS list on 6th April, 2015. This should largely settle this matter.
You would no doubt be aware that it is again feasible to register an Australian SMSF with HMRC provided all members are over the age of 55. Semantically, they are calling it a ROPS to place more onus on the trustees to be qualifying. There is no need to register as a ROPS if you have completed your UK transfers. However, please note that UK reporting and investment requirements remain in place.
The issues now will turn to the Australian side of the equation. It remains to be seen how the $500,000 non-concessional contribution cap plays out. If anyone has practical examples of how the UK/Australia are treating non-QROPS pension payments in lump sum format under the double tax agreement, it would be great if you would share this information. Also, I note that people are neglecting on an overseas fund to another overseas fund the “previously exempt” calculations they will eventually need.
The NetActuary Team