I Want to Transfer a Pension to Australia - What Are My Options?
The way to transfer a pension to Australia from the UK is to transfer into a QROPS. Find out more about QROPS here and whether it is the right step for you.
What Taxes are Levied on a QROPS Transfer?
QROPS Transfer to Australia and New Zealand were once tax free
There was once a time when transferring a UK pension to an Australian or New Zealand QROPS would not be taxed. However, all that changed when the UK government brought in the OTC, or the Overseas Transfer Charge, which is essentially a tax on QROPS transfers in certain circumstances. If applicable, the OTC is charged at 25% of the transfer value of the funds being transferred into the QROPS. This could apply whether the transfer to a QROPS is from a UK Defined Benefit or Defined Contribution scheme.