Transferring a UK pension to Australia can offer long-term benefits, but strict ROPS rules and tax conditions apply. This guide explains every step of the process, from eligibility and timing to contribution caps, HMRC reporting and Australian taxation, along with a checklist and scam-prevention tips to help protect your savings.
If you’ve built up a UK pension and moved to Australia, you may have wondered whether you can transfer your savings into an Australian superannuation fund.
Until 2015, many Australian residents could transfer UK pensions relatively easily.
That changed when HMRC tightened its Recognised Overseas Pension Scheme (ROPS) criteria. Most large public super funds were removed from the approved list, leaving only a small number of Self-Managed Super Funds (SMSFs) and a few specialist public funds that met HMRC’s strict “Pension Age Test”.
Today, transferring a UK pension to Australia is still possible, but it’s complex, time-sensitive, and carries tax implications in both countries.
This article was originally published in 2015 and has been updated to reflect the situation in 2025 with our partners The Alexander Beard Group who provide regulated wealth and financial planning services in both Australia and the UK, as well as other jurisdictions around the world.
The information below is for general guidance only and does not constitute financial advice. Rules for pension transfers can change without notice. Always consult a regulated financial adviser familiar with both UK and Australian pension legislation before taking any action.
| Area |
Current position (UK & Australia, 2025) |
What this means for you |
|
Minimum transfer age |
HMRC’s Normal Minimum Pension Age (NMPA) is 55, rising to 57 from 6 April 2028. |
The receiving fund must not allow any access before the NMPA (unless serious ill-health rules apply). |
|
Overseas Transfer Charge (OTC) |
25% of the transfer unless the member is resident in the same country as the QROPS. |
If you’re living in Australia when you transfer to an Australian ROPS, the charge should not apply. If you move abroad within 5 years, it can be switched back on. |
|
Overseas Transfer Allowance (OTA) |
Replaces the old Lifetime Allowance. The OTA is £1,073,100 (unless the client has a historical lifetime allowance protection where the allowance will be higher) |
The amount you transfer counts toward this limit. Excess transfers may attract a 25% UK charge. |
|
HMRC reporting |
ROPS must report payments to HMRC for 10 years after any transfer. |
Your scheme manager must keep records and notify HMRC of withdrawals or further transfers. |
|
Australian non-concessional caps |
AUD 120,000 per year or AUD 360,000 using the three-year bring-forward rule. |
Your transfer counts toward these limits, subject to your total super balance. |
|
Transfer Balance Cap (TBC) |
AUD 1.9 million from 1 July 2023. |
The limit for moving funds into the tax-free retirement phase. |
|
Tax on growth (Applicable Fund Earnings) |
Growth since you became Australian tax resident is taxable. If the transfer occurs within 6 months of arrival, it’s ignored. |
You can elect under s.305-80 ITAA 1997 for your fund to pay 15% tax on the taxable portion instead of paying at your marginal rate. |
|
Withdrawals |
Generally tax-free from age 60 when drawn from taxed super in retirement phase. |
Earlier withdrawals or untaxed components can attract tax. |
Unfortunately, pension transfers are a prime target for fraudsters. If you’re approached about moving your UK pension, pause immediately if you notice any of the following red flags:
|
Red flag |
Why it’s risky |
|
Unsolicited contact (emails, calls, social media messages) |
Regulated advisers never cold-call. Genuine ROPS transfers begin with your request, not theirs. |
|
Promises of early access or “loopholes” |
UK law forbids access before 55 (57 from 2028) except for genuine ill-health. “Pension liberation” schemes often lead to 55%+ HMRC penalties. |
|
Guaranteed or unusually high returns |
Legitimate pension investments carry risk. If it sounds too good to be true, it is. |
|
Requests to send money overseas personally |
Transfers should always go from trustee to trustee (UK to Australian super), not your bank account. |
|
Pressure to act quickly |
Pension transfers take months, not days. Pressure tactics are a red flag. |
|
No UK or Australian regulation |
Check the adviser’s authorisation on the FCA Register (UK) and ASIC Financial Adviser Register (Australia). |
|
Scheme not listed on HMRC’s ROPS list |
Only funds listed on GOV.UK qualify. Always check the list directly before transferring. |
If you suspect a scam:
If you’re unsure whether to transfer, seek advice from a professional who understands both jurisdictions. A good adviser will model the long-term differences between keeping your pension in the UK and transferring it to Australia, including future currency risk and access to retirement income.
If you would like to discuss a potential pension transfer, or would simply like a second opinion on advice already received, we can help you.
Request an introduction to one of our trusted partners and they’ll be in contact to arrange your free, no obligation discovery call.
Yes, but only to a Recognised Overseas Pension Scheme (ROPS) that meets HMRC’s strict rules. Since 2015, most large public super funds in Australia no longer qualify, so you’ll usually need to set up a Self-Managed Super Fund (SMSF) with a deed that prevents access to benefits before the UK’s minimum pension age (currently 55, rising to 57 in 2028).
You must also be resident in Australia at the time of transfer to avoid the UK’s 25% Overseas Transfer Charge.
A Recognised Overseas Pension Scheme (ROPS) is a foreign pension arrangement approved by HMRC. Transferring your UK pension to a non-ROPS scheme could lead to a 55%+ tax penalty.
Always check the official HMRC ROPS list before authorising any transfer.
You may, depending on the transfer value and your circumstances.
Transfers above the Overseas Transfer Allowance (£1,073,100) attract a 25% charge on the excess.
If you’re not resident in Australia at the time of transfer, the 25% Overseas Transfer Charge (OTC) may apply to the entire transfer.
If your ROPS is later deregistered, future withdrawals may also trigger UK tax penalties.
A cross-border pension specialist can calculate the precise tax impact before you proceed.
Possibly. The growth in your UK pension since you became an Australian resident (called Applicable Fund Earnings) is taxable.
If you complete the transfer within six months of becoming an Australian tax resident, the AFE is ignored. After that, you can elect under s.305-80 of the ITAA 1997 for your fund to pay 15% tax on that portion instead of paying it personally at your marginal rate.
Most public funds in Australia don’t qualify as ROPS because they allow access to benefits before age 55 (or 57 from 2028).
A Self-Managed Super Fund (SMSF) can be structured to comply with HMRC’s rules, offering more flexibility and control. However, SMSFs also bring extra administrative, audit, and reporting duties, so they’re best suited to people with substantial pension savings and professional support.
Transfers typically take three to six months, depending on your UK provider, the Australian fund’s readiness, and HMRC processing times. Delays are common if your UK pension is a defined benefit scheme or if paperwork is incomplete.
No. Any scheme offering “early access” before the UK’s Normal Minimum Pension Age (55, rising to 57 in 2028) breaches HMRC’s Pension Age Test.
Participating in such a transfer could be treated as an unauthorised payment, resulting in severe tax penalties in the UK and possible ATO investigation in Australia.
Key risks include:
Always verify the ROPS status, ensure dual-qualified advice, and never act under pressure.
Before you proceed, confirm:
It depends on your plans. Transferring may simplify currency exposure and future income if you intend to retire permanently in Australia.
However, leaving it in the UK may preserve certain guarantees or access to the UK Financial Services Compensation Scheme. The decision requires professional comparison modelling between your UK and Australian retirement outcomes.
Another advantage of transferring to an Australian ROPS being able to draw a tax-free income in retirement.
No. The UK State Pension cannot be transferred. You can, however, claim it from abroad, but it will not increase each year (no annual uprating, i.e. it is frozen) because Australia doesn’t have a social security agreement with the UK covering State Pension increases.
Seeking independent advice from a qualified financial adviser who has extensive knowledge of the UK pension rules, ROPS requirements and also the Australian pension system is the best way forward.
Whether you're exploring your options, getting a second opinion or looking for a trusted specialist to assist with your retirement plans, our free introduction service will connect you with an independent advisor who has extensive knowledge of UK and Australian pension systems and will be able to discuss your options in full.
When you request a free introduction, our partner will also offer you an initial free consultation lasting between 15 and 30 minutes during which you can discuss your situation and get answers to basic questions. If you decide you would like to explore the various options, our partner will explain next steps and present any proposal in full including a breakdown of any fees and charges for their services.
