LGIAsuper is no longer a QROPS

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On 8 March 2017, the UK government announced significant changes to the taxation of transfers of UK pensions to foreign pension schemes, including Australian superannuation funds.

A new 25% tax charge (‘overseas transfer charge’) applies to transfers of UK pensions to a Qualifying Recognised Overseas Pension Scheme (QROPS) requested from 9 March 2017.

The new UK legislation also requires all QROPS to enter into an undertaking with HMRC to be held jointly and severally liable for any tax liability imposed by HRMC on a UK transfer.

LGIAsuper has determined that it is not in the best interests of its members to enter this undertaking due to the potential conflict between the operation of the overseas transfer charge with Australian superannuation law, and the additional administration burden on facilitating the overseas transfer charge.

LGIAsuper has therefore deregistered as a QROPS with effect from 13 April 2017.

As we are no longer a QROPS, we cannot accept any transfer of a UK pension after 13 April 2017 without the imposition of the UK unauthorised payments charge to your UK pension.

For more information about the changes and how it impacts you, please see our Transferring from a UK pension info sheet or call us on 1800 444 396.

First published:

Apr
13

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