Pension contributions, 62 year old, dual citizen.

[caziques]

Trying to help an old friend out regarding UK personal pension contributions.

She is a dual UK Australian citizen, presently living and working in the UK - probably going back to Australia within a few years.

62 years old, no UK personal pension, earning around 110,000 pounds a year - in the dreaded 60% tax zone.

If she were to start a UK personal pension very soon, could she potentially pay in 60,000 pounds this tax year? and get loads of tax relief.

If it makes any difference she is divorced with three children, 17, and 11 year old twins. All the children are dual citizens (the twins may have US citizenship as well).

She can access, to some extent, an Australian personal pension, no idea of the amount in there.

Presumably there is the possibility of ISAs as well, whilst residing in the UK.

Any help appreciated.

[dingg]

Yes she can put 60k in annually, she can invest in ISA's as well, might be worth drawing beforehand moving back to Australia depending on how Australia tax system regards them...

[craig1912]

Two useful links- not advocating HL as a provider but info is good.

https://www.hl.co.uk/pensions/tax-relief

https://www.hl.co.uk/pensions/contributions/carry-...

[thekingisdead]

Worth considering that other countries do not always recognise investments in an overseas tax wrapper.


The US for instance doesn’t give a hoot if you’ve got 6figure investments in a UK ISA, they want their capital gains and income tax on dividends etc.

[onny]

She can open personal pension account in the UK and contribute to that while she is working there.

But she needs to leave the UK and return back to Australia 'permanently' and transfer her personal pension from the UK back to her Australia pension account before her 65th birthday.

Massive tax advantage if she does. There is no tax for personal pension income if you stop working and start drawing on your personal pension (Superannuation) when you turn 60 in Australia. I think she might have to pay a one off 15% tax transferring her founds from the UK back to Aust but she needs an accountant advise for that.

The reason for the 65th birthday is that in Australia, you are deemed to be in your pension phase @65 and you will have to start drawdown from your personal pension from that age and as result of the drawdown, you won't be allowed to contribute into your pension account from that point. All earnings/profits in your personal pension account once you start drawdown phase is completely tax free...

Edited by onny on Friday 23 August 08:39