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  • 1 Post By GentleGeorge

Transfer MPF to UK Scheme?

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  1. #1

    Join Date
    Aug 2012
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    50

    Transfer MPF to UK Scheme?

    Hi,

    If relocating back to UK, is anybody aware of any provision to roll the MPF account balances over to a UK scheme?

    I haven't heard of one and expect it would just be a case of cashing out MPF and then investing into ISA/SIPP/general account when back in the UK under the usual allowances etc?

    Thanks.


  2. #2

    Join Date
    Feb 2019
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    MPF is horribly expensive, you're definitely best off cashing out and having nothing to do with it again.

    traineeinvestor likes this.

  3. #3

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    Quote Originally Posted by GentleGeorge
    MPF is horribly expensive, you're definitely best off cashing out and having nothing to do with it again.
    Fully agree with you, but that wasn't the question. I'm wondering if there's any provision in the UK to allow for incoming transfers of overseas pension balances.(MPF specifically)

  4. #4

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    Feb 2019
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    Why would that be advantageous?

    Typically you put money into a pension to avoid income tax on it now, but tax will still be due when you draw it down (though probably at a lower rate). Your MPF money is available to you now, tax-free, so why put it into a pension?


  5. #5

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    Feb 2019
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    Ahhh re-reading your first post I see you mentioned ISAs as well - I can see how putting it into an ISA would be handy, to make the income from it tax-free as well.

    If anyone knows of such a mechanism, I'd love to hear about it as well.


  6. #6

    Join Date
    Aug 2017
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    I would have thought just withdrawing cash and then investing in a pension, savings or such like when you get to the UK would be the simplest and probably just as effective as any other way.


  7. #7

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    Sep 2019
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    Question: If I return to the UK and withdraw from my HK MPF later, would I have to pay UK tax on my HK MPF?


  8. #8

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    Quote Originally Posted by [email protected]
    Question: If I return to the UK and withdraw from my HK MPF later, would I have to pay UK tax on my HK MPF?
    I wouldn't have thought so. As UK citizens we don't have to pay tax on income from outside the UK. I am certainly not declaring any HK income back in the UK. I wouldn't expect MPF to be any different.

    https://www.gov.uk/tax-foreign-income

  9. #9

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    Quote Originally Posted by Pauljoecoe
    I wouldn't have thought so. As UK citizens we don't have to pay tax on income from outside the UK. I am certainly not declaring any HK income back in the UK. I wouldn't expect MPF to be any different.

    https://www.gov.uk/tax-foreign-income
    When you are resident in the UK, you do need to pay capital gains tax on investments abroad. When you cash out overseas investments and repatriate the savings, there is a high probability those funds will be flagged to the HMRC. Even repatriating normal income will raise flags. Once you get audited expect a world of pain from penalties and interest on unpaid tax.

  10. #10

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    Aug 2017
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    Quote Originally Posted by greenmark
    When you are resident in the UK, you do need to pay capital gains tax on investments abroad. When you cash out overseas investments and repatriate the savings, there is a high probability those funds will be flagged to the HMRC. Even repatriating normal income will raise flags. Once you get audited expect a world of pain from penalties and interest on unpaid tax.
    Well that's ok, tax on the 50HKD I've made on my investments whilst being in HK shouldn't be too painful.

    I actually forgot to tell them I was leaving! They're not noticed yet! (2 years on)

    Edit: just noticed you said as a UK resident. I was talking as a HK resident.