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Clockwise from left, save cash by seeking expert advice; plan your financial future in advance; aim to make every penny in your retirement pot count tax on the growth. This is unlike a UK pension, where investment growth is tax-free.

This may lead to a new migrant to Australia coming to the conclusion that, for tax reasons, they should leave the fund in the UK until retirement and then transfer across to Australia. However, Australia also has a tax, known as Section 305 Tax.

Section 305 Tax applies if an individual arrives in Australia on a permanent visa and proceeds to transfer their UK pension to an Australian scheme after six months of their arrival.

The UK fund will be subject to tax on any growth that occurred between their date of arrival in Australia and when the funds arrive in an

The Australian scheme has to be recognized as a QROPS

Australian scheme. This is often referred to as the ‘Six Month Rule’.

EMPLOYERS SCHEME Many new migrants to Australia will leave their pension planning as they assume that they can transfer any UK pensions to their new Australian employer’s scheme. This, however, may not be an option.

This is because the UK’s HMRC (Her Majesty’s Revenue and Customs) imposes strict regulations on the type of overseas scheme that a UK pension can be transferred to. In order for an Australian scheme to accept a UK pension transfer in, the scheme has to first be recognized as a QROPS (Qualifying Recognized Overseas Pension Scheme) by HMRC.

If your Australian employer’s superannuation scheme is not a QROPS, then the UK pension will not be permitted to transfer to that scheme. Many

ARRIVAL SURVIVAL

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