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Transfer an overseas pension directly to MPF?

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  1. #11

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    Quote Originally Posted by Trebor:
    If you can point me to someone competent then I would.

    I believe they have been asked by my colleague and the answer was no but I'm not sure I trust them. Was hoping someone may have done it on here.

    Start with these guys
    They should be able to tell you

    MPFA

  2. #12

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    I'm in the same boat. I have 2 UK pensions, not much, less that 20K Sterling that I tried to transfer to HSBC MPF pension in Hong Kong. They said they don't accept overseas funds.

    I'm a British citizen, but HK resident for 3 years, and I'd like to simply cash out those pensions in the UK, either to a UK or HK bank account. What I'll do with that money is TBD. Is there any way a non resident can get that money out, either taxable or tax free before the age of 55?

    Many Thanks in advance,


  3. #13

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    Quote Originally Posted by padder:
    I'm in the same boat. I have 2 UK pensions, not much, less that 20K Sterling that I tried to transfer to HSBC MPF pension in Hong Kong. They said they don't accept overseas funds.

    I'm a British citizen, but HK resident for 3 years, and I'd like to simply cash out those pensions in the UK, either to a UK or HK bank account. What I'll do with that money is TBD. Is there any way a non resident can get that money out, either taxable or tax free before the age of 55?

    Many Thanks in advance,
    For UK pension isn't there something called QROPS? Understand there is a hefty tax on moving the pension out now. I've looked into moving my UK pension out and gave up. Just left it where it is. Can't even seem to move it to another provider in the UK because I am no longer UK tax resident. Like you mine is lest than GBP20k.

  4. #14

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    Quote Originally Posted by pin:
    For UK pension isn't there something called QROPS? Understand there is a hefty tax on moving the pension out now. I've looked into moving my UK pension out and gave up. Just left it where it is. Can't even seem to move it to another provider in the UK because I am no longer UK tax resident. Like you mine is lest than GBP20k.
    You can't cash out before 55. HMRC allows the money to be transferred to scheme abroad that are QROPS compliant. For a scheme to be compliant it must abide by the same rules as the UK: which means they have to confirm the money won't be cashed out before 55.

    As far as I can tell, because MPF schemes allow people to cash out before they're 55 if they permanently leave HK, MPF schemes are not QROPS compliant. There are other non MPF schemes, specifically designed to be QROPS, compliant, but as far as I recall their fees are astronomical.

    If you are over 55 and planning to retire then it can be worthwhile transferring to a Hong Kong QROPS because if you leave it in the UK you have to pay income tax when you draw on the funds. There is no HK tax if you draw down from a HK QROPS.

    To do so you need to live in HK for at least 5 years after the transfer. Otherwise HMRC will demand a 25% fee.

    http://www.qropsspecialists.com/qrop...ers-hong-kong/
    Last edited by greenmark; 04-04-2018 at 09:05 PM.
    TheBrit and HK_Katherine like this.

  5. #15

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    Quote Originally Posted by greenmark:
    You can't cash out before 55. HMRC allows the money to be transferred to scheme abroad that are QROPS compliant. For a scheme to be compliant it must abide by the same rules as the UK: which means they have to confirm the money won't be cashed out before 55.

    As far as I can tell, because MPF schemes allow people to cash out before they're 55 if they permanently leave HK, MPF schemes are not QROPS compliant. There are other non MPF schemes, specifically designed to be QROPS, compliant, but as far as I recall their fees are astronomical.

    If you are over 55 and planning to retire then it can be worthwhile transferring to a Hong Kong QROPS because if you leave it in the UK you have to pay income tax when you draw on the funds. There is no HK tax if you draw down from a HK QROPS.

    To do so you need to live in HK for at least 5 years after the transfer. Otherwise HMRC will demand a 25% fee.

    http://www.qropsspecialists.com/qrop...ers-hong-kong/
    Just to add, I am not a UK tax specialist so the info above is only my best understanding. I might be wrong.

  6. #16

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    Regarding MPF, as you know it’s a mandatory you pay 5% and company pay 5%. There is also a voluntary contribution that you could make. Basic you could pay in extra if you wanted to.
    However voluntary contributions used to be flexible, meaning you could put in and take out as you wish, no need to wait until retirement age.
    But some people have been using it as a trading platform, buying and selling ( withdrawals) frequently. There will be a new rules that your voluntary contributions will have to stay in the account until your retirement or other valid circumstances.


  7. #17

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    If you two UK pensions are under 15k each can you not cash them in under the materiality rules? It may have changed.

    In the end i cashed in my Guernsey pension paid the tax hit and bought a condo in Thailand with it which is now rented out.


  8. #18

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    Original Post Deleted
    Well if the market is performing well like last year it could out perform a lot of stocks, the best performing MPF were up more than 45% last year.

  9. #19

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    Here is the approved QROPS list by the HMRC:

    https://www.gov.uk/government/public...-notifications

    You will see no approved HK QROPS (i.e. MPF schemes). Loads of Isle of Man, Jersey and Guernsey approved QROPS and we all know what they mean (i.e. stay the hell away!!!)


  10. #20

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    Nothing wrong with Guernsey