As of the 1st of July 2015 QROPS is no longer available to most super funds in Australia. This is due to the His Majesty's Revenue & Customs (HMRC) scheme (being the UK equivalent to the ATO) ruling that Australian super funds are no longer compliant with the HMRC release conditions.
Are there any scenarios which QROPS is accepted?
Self-Managed Super Funds (SMSF) can still register as a compliant fund to qualify for QROPS transfers. They have to declare that their fund does not allow the withdrawal of funds earlier than age 55 unless the member is retiring due to ill-health.
The relevant QROPS paperwork is required to be completed and signed by the trustee of the SMSF, not Netwealth.
Netwealth can accept the transfer of funds into a Wrap service account that holds an SMSF.
For the money to be transferred from the UK, it is required to be sent to Netwealth's Applications bank account. The money will be automatically converted from Great British Pounds (GBP) to Australian Dollars. Netwealth cannot hold GBP in a Wealth Accelerator environment. Netwealth will pay the money into the SMSF account as a regular deposit.
Unauthorised transfers can be heavily taxed. Please talk to a UK Tax Specialist to discuss whether you will have tax liability.
The most efficient way to initiate this process is to contact the HMRC directly to obtain Transfer Value and additional requirements to facilitate an overseas QROPS transfer.
Some important things to note:
- All documentation sent to the HMRC must be original.
- There may be tax implications on the transfer if it occurred 6 months or more after declaring Australian tax residency.
- QROPS transfers count toward the non-concessional contribution cap and the "Bring Forward" rule, and have the same maximums.
- QROPS funds are subject to a 10 year reporting period. Any payment will have to be reported to the HMRC, including pension payments, lump sum payments and transfers to an Australian super fund.