Sladen Snippet – SMSFs cannot qualify as a QROPS if they have members aged less than 55

Recent correspondence from the United Kingdom’s revenue authority (HMRC) has confirmed that the HMRC will not register a self managed superannuation fund (SMSF) as a Qualifying Recognised Overseas Pension Scheme (QROPS) unless the SMSF trust deed limits the membership to persons who are aged 55+.

The HMRC has rejected a segregated QROPS benefit approach on the basis that members have a “right” under Australian superannuation law to access their benefits if they are aged less than 55 under the compassionate grounds or hardship conditions of release.

This position will be disappointing to UK expats, aged less than 55, who wish to bring their UK pension benefits into the Australian superannuation system via their SMSFs.

For further information or advice please contact:

Phil Broderick
Principal
T: 03 9611 0163
M: 0419 512 801
E: pbroderick@sladen.com.au

 Melissa Brazzale
Associate
T: 03 9611 0161
E: mbrazzale@sladen.com.au