Transfer Request Request to transfer UK pension benefit This form is used when you wish to transfer a benefit from a UK Deferred Benefit Pension Scheme to AMP Flexible Lifetime® Super, Flexible Lifetime® – Allocated Pension (through the Super Consolidation Account), CustomSuper®, SignatureSuper® or AMP Retirement Savings Account.
You can elect to:
In order for AMP to initiate the transfer process we require:
• have a combination of the above, where you can elect that only part of the growth component is to be taxed by the fund and the balance included as assessable income in your income tax return.
• Relevant sections of this form to be completed, signed and returned to AMP. • Written evidence of your employment status within Australia. For example: Letter of offer from your Australian employer, or copies of contract for services rendered or an invoice for goods and services provided (if self-employed). • Proof that you do not hold any current employment within the UK. For example: A copy of your termination notice from your last employer, or proof of the finalisation of any company/business accounts (if self-employed). There may be tax payable in Australia on part of the Transferred Benefit – the growth component or assessable amount, which is the amount of the benefit that has accumulated in your UK fund between the date of your Australian residency and the date of the benefit transfer. There is no tax payable on the growth component if the transfer takes place within 6 months of you becoming an Australian resident for taxation purposes.
When can Transferred Benefits be accepted We can only accept the Transferred Benefit if: • You have provided us with your TFN, and – You are under age 65, or – If you are age 65 to 74, and you have worked at least 40 hours in a period of 30 consecutive days during the same financial year that the transfer is made. • Your benefit is within the non-concessional contribution cap. If you are age 75 and over, we cannot accept the Transferred Benefit.
• have the growth component treated as a taxable contribution to your AMP plan (to be taxed at 15%). The balance of the benefit will be treated as a tax-free non-concessional contribution, or • have the growth component taxed at your marginal tax rate following inclusion of the benefit as assessable income in your annual income tax return. The benefit transferred will be treated as a tax-free non-concessional contribution, or
Taxation and preservation – issues to consider Independent financial planning and taxation advice should be sought as the information outlined below is of a general nature and may not necessarily apply in specific circumstances. The information is current as at July 2007. These transfers have complex tax implications, for example: • Potential future value of the UK pension. • The “preservation” rules that apply to superannuation funds in Australia may differ from the rules in the UK. • Taxation implications that arise when a benefit is transferred to Australia and when the benefit is paid to you upon termination of or retirement from employment. • The initial transfer to AMP should not incur any taxation in the UK because the AMP Superannuation Savings Trust is a Qualifying Recognised Overseas Pension Scheme (QROPS). Depending on the nature of subsequent transactions, tax could be payable in the UK. • If you exceed your annual contribution caps, you will be liable for an Excess Contributions Tax. There may be bank fees charged by the UK fund/bank and the Australian bank when the funds are transferred to Australia via a telegraphic transfer or via a cheque.
Have you… • Completed and signed the Declaration? • Completed and signed the Election Notice?
Preservation (Access) rules
• Completed and signed the Letter of Authority to AMP?
Unless advised otherwise by the transferring Trustee, the amount transferred from an overseas fund into an AMP fund will usually be regarded as fully preserved. That is, it will only be accessible to you on retirement after reaching the retirement age (currently 55, but increasing to age 60 for those born after 1 July 1960) or satisfying another condition of release.
• Enclosed proof of Australian employment?
Election for tax to be paid by the Australian superannuation fund From 1 July 2004, members can elect to have part of the transferred amount (the value of the growth since becoming an Australian resident) treated as a taxable contribution in the Australian fund. By doing so, the fund will deduct tax at the concessional fund rate (15%) rather than the individual paying their marginal tax rate through their income tax return.
• Enclosed proof of termination of UK employment? • Ensured this benefit does not exceed the contribution cap?
Deferred benefit entitlement transfers Key taxation considerations – a brief overview Australia The tax treatment of an overseas deferred pension entitlement will vary according to its origins and whether it is to remain invested in the UK or is to be transferred to Australia.
AMP Superannuation Limited ABN 31 008 414 104, AFSL No. 233060, RSE Licence No. L0000550, the trustee of the AMP Superannuation Savings Trust, RSE Registration No. R1001648. ® Registered trade mark of AMP Life Limited ABN 84 079 300 379.
If the overseas fund IS NOT employer sponsored:
Taxation of transfers to a QROPS
The Foreign Investment Fund (FIF) rules will generally apply. There are some exceptions, for example where the total FIF investments are under $50,000, or where the value is less than $50,000 it will be treated the same as an employer sponsored fund.
When benefits are transferred from a UK pension scheme to an Australian superannuation fund that is a QROPS, the transfer is treated as a “benefit crystallisation event” (BCE). As a BCE the transfer is assessed against the member’s lifetime allowance (LTA) of £1.6 million (2007/2008) – indexed.
If the FIF rules apply, it means that even though no income is physically received by an Australian resident, the annual accumulation of income (ie the growth) within the fund is personally assessable to an individual in Australia on a yearly basis. Upon actual withdrawal from an overseas fund, the taxable portion of the benefit is reduced by amounts already assessed under the FIF rules.
If the overseas fund IS employer sponsored: Australia‘s FIF taxation legislation will not affect an Australian resident who has deferred entitlements in an overseas employer sponsored superannuation fund. However, any transfer to an Australian superannuation fund may cause an immediate taxation liability in Australia, if the transfer occurs after 6 months of having become an “Australian resident for taxation purposes”. Growth on the entitlement between the date residency commenced and the date of transfer is generally included as assessable income and taxed at the individual’s marginal tax rate. If the transfer (from an Employer Sponsored fund) occurs within 6 months of the date of residency, no tax is usually payable. Employer sponsored Benefit retained in overseas fund
Benefit transferred to Australian fund
FIF rules do not apply.
Tax treatment depends on whether benefit is transferred within first 6 months of becoming an Australian resident.
Non-employer sponsored FIF rules apply (subject to exceptions) taxing any growth in scheme on an annual basis. Same as Employer Sponsored situation, except that any tax paid under FIF rules will be offset.
Amounts under the (indexed) LTA will be transferred without incurring UK tax to the QROPS. As indicated earlier, there may however be tax payable in Australia on this transfer. Any amount in excess of the LTA will attract a 25% tax in the UK. When, where and how the benefit transferred out of the UK is subsequently paid by the QROPS will determine any additional UK tax treatment of the initial benefit that was transferred. Assuming the member is a UK tax resident, or has been in the past 5 years, the following scenarios are considered: • Where the transferred benefit is subsequently paid to the member as a lump sum from the QROPS, it will be reported to HMRC. The first 25% will be tax-free. Amounts in excess of the 25% will be liable for an unauthorised payment charge of 40%. There are certain benefits that can be paid from the QROPS that are exempt from taxation in the UK (eg a seriously ill health lump sum – where the member is expected to die within 12 months of the payment). Please note that the usual Australian preservation/condition of release rules will apply to any payments from a QROPS. • Where the transfer benefits are subsequently rolled over to another QROPS, there will be no immediate effect. The original QROPS will report the rollover to HMRC and the reporting requirements are transferred to the new QROPS. • Should the transfer benefits be subsequently rolled over to a non-QROPS (a superannuation fund that did not elect to become a QROPS), then this transfer will be reported to HMRC. The payment will be treated as an unauthorised payment. It will incur an unauthorised payment charge of 40%. • Where the QROPS pays the Australian tax resident member a pension, the first pension payment will be reported to HMRC. The pension will only be taxed in Australia.
NB: FIF payments are the responsibility of the individual taxpayer.
These rules should also apply where an annuity is purchased with money from a QROPS. However, the reporting procedures are unclear where the annuity issuer is not a QROPS.
United Kingdom
Tax File Number notification
An Australian superannuation fund has the option of registering with Her Majesty’s Revenue & Customs (HMRC) in the UK to become a Qualifying Registered Overseas Pension Scheme (QROPS). Once registered as a QROPS, there are reporting obligations for the Australian superannuation fund. The AMP Superannuation Savings Trust is registered in the UK as a QROPS.
Who will these provisions apply to? After the benefit has been transferred to the Australian QROPS, the fund may be obligated to report subsequent transactions to Her Majesty’s Revenue & Customs (HMRC). The Australian QROPS will always need to report to HMRC should the member remain a UK resident for tax purposes. But in the more usual circumstances where the member is no longer a UK tax resident (ie they are now an Australian tax resident only), the Australian QROPS will only need to report transactions where the member is a UK tax resident in the year the transaction is made, or in any of the previous 5 tax years. So the new UK tax rules outlined below will effectively have no application where a member is NOT a resident of the UK for tax purposes, and has not been for the last 5 years. In these circumstances it is only the Australian tax rules that will need to be considered. Care must be taken should the member become a UK resident again as the 5 year period would restart.
We are required to tell you information before you provide your Tax File Number (TFN). This information is set out in your Product Disclosure Statement. It is important to note that we cannot accept personal contributions (including overseas transfers) if you don’t tell us your TFN.
What would happen if I transferred my UK pension benefit to a fund in Australia that is not a QROPS? Where a member transfers benefits from a UK pension scheme to an Australian superannuation fund that is not a QROPS, there may be significant taxation implications at the time of transfer: • T his transfer is not a benefit crystallisation event and will not be assessed against the member’s lifetime allowance. • T he amount transferred will be treated as an “unauthorised payment” and incur the “unauthorised payment charge” of 40% in the UK. • If the amount being transferred in any 12-month period is greater than 25% of the UK pension scheme balance, then an “unauthorised payment surcharge” of 15% will also be charged on the amount transferred. This means that an effective tax rate of up to 55% could be charged to amounts transferred to an Australian superannuation fund that is not a QROPS.
33 Alfred Street, Sydney NSW 2000 http://www.amp.com.au 906097 11/07
Issue 10c
Please staple all relevant material together
Request to transfer UK pension benefit 1 PERSONAL DETAILS Title
Surname
Given names
Date of birth
Sex
Member number
Tax File Number
Address for communications
Phone number
Fax number
Mobile phone number
Email address
2 EMPLOYMENT STATUS IF YOU ARE AGED 65 AND OVER Complete this section only if you are aged 65 and over, otherwise go to section 3. When you are 65 or over, there are restrictions on the types of contributions that AMP can accept. To make sure we meet this requirement, we need to ask applicants that are 65 and over the following question. Have you worked for at least 40 hours in a period of 30 days in the current financial year? Yes – We are only able to accept certain contributions (including transfers such as this). No – We are only able to accept Award/Workplace Agreement employer Contributions and rollovers. Please refer to the Product Disclosure Statement for further information.
3 authority I am writing to request the transfer of my current UK Pension Plan entitlements, currently held by: UK fund name
to the AMP Superannuation Savings Trust ABN 76 514 770 399. The AMP Superannuation Savings Trust is a Qualifying Recognised Overseas Pension Scheme (QROPS 500041). This letter also serves to authorise AMP to act on my behalf with regards to the transfer of my UK Pension entitlements.
UK Pension Fund details Name of fund
Address
Contact name
Phone number
Member number
AMP Superannuation Limited ABN 31 008 414 104, AFSL No. 233060, RSE Licence No. L0000550, the trustee of the AMP Superannuation Savings Trust, RSE Registration No. R1001648.
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906097 01 (11/07)
Current balance (mandatory). Cannot exceed AUD$411,000, if under 65 or AUD$137,000, if age 65 to 74 (2007/2008)
Signature of applicant
Date
4 DECLARATION To the Trustee of the AMP Superannuation Savings Trust, AMP Superannuation Limited and the Manager of the UK fund name
I, (member name)
declare: 1.
I became a tax resident of Australia on (dd/mm/yyyy)
2.
I ceased being a tax resident of the United Kingdom on (dd/mm/yyyy)
3. I have a pension entitlement in the United Kingdom under the UK fund name
4. I wish to transfer my pension entitlement to the AMP Superannuation Savings Trust in Australia. 5. The UK fund name
Pension Fund will advise the net transfer value of my pension entitlement (which may be different to its current value) and the amount that the pension entitlement was on the date of my Australian residency.
I understand that: •
s at the date of transfer into the AMP Superannuation Savings Trust, my entitlement will be the Australian Dollar equivalent of A the net transfer amount.
•
MP is not allowed to accept a transfer if it exceeds the individual’s non-concessional contribution cap and will return the entire A transfer amount to its origin in such cases. Differences may occur to the returned amount due to variation in currency exchange rates.
•
nce the transfer is complete, the Trustee of the AMP Superannuation Savings Trust is liable for payment of benefits, as O represented by the transfer value (net of any fees, charges, tax or investment fluctuation).
•
nder the terms of the relevant Trust deed and in accordance with Australian superannuation law, loans to members are not U permitted against any part of the transferred amount.
•
he benefits transferred are subject to Australian superannuation and taxation law and will be preserved until retirement age and T I retire or satisfy another condition of release.
•
If I elect, AMP Superannuation Limited will deduct any applicable tax from the transferred benefit.
•
I must inform AMP Superannuation Savings Trust if my residency for tax purposes changes at any time.
•
I will notify the trustee in writing immediately if I am no longer eligible to contribute or remain a member of the Fund.
Member Signature
Date
AMP Superannuation Savings Trust representative signature
Date
For and on behalf of AMP Superannuation Limited
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5 ELECTION NOTICE Upon transfer of my current UK Pension Plan entitlements, currently held by: UK fund name
To The AMP Superannuation Savings Trust ABN 76 514 770 399, I make the following election (under section 305-80 of the Income Tax Assessment Act): I instruct AMP Superannuation Limited to deduct the applicable tax from the assessable amount (“growth component”) of following transfer to AMP Superannuation Savings Trust plan number The assessable amount of the payment is to be included in my annual income tax return. I instruct AMP Superannuation Limited to deduct the applicable tax from of the assessable amount (“growth component”) of
following transfer to AMP Superannuation Savings Trust plan number By signing this form, I am making the following statements: •
I take full responsibility for this application. In particular, I have fully read and understood the information attached to this form.
•
The information I have supplied on this form is true and correct.
•
I am aware that I may ask AMP Superannuation Limited for all the information that I need to understand my benefit entitlements in my existing AMP superannuation plan and I do not require any further information.
•
I have sought advice from my financial planner or have decided not to seek advice.
Member Signature
Date
Send your completed form to: AMP Life Limited Customer Service PO Box 300 Parramatta NSW 2124
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