Can you transfer a pension in specie?

In specie transfers involve the transferring of assets from one pension scheme to another. These are relatively common and usually occur between different Small Self-Administered Schemes (SSASs) and/or Self-Invested Personal Pensions (SIPPs), otherwise known collectively as Investment Regulated Pension Schemes.

Is an in specie transfer taxable?

Transferring an asset ‘in specie’ means to transfer the ownership of that asset from one person/company/entity to another person/company/entity in its current form, i.e. without the need to convert the asset to cash. As they are transfers, they don’t get tax relief; nor do they count against the annual allowance.

Does an in specie transfer trigger a capital gain?

While you do not sell the asset down to cash, an in-specie transfer will generally trigger a capital gains tax event, as you transfer the ownership.

What is an in specie contribution to superannuation?

In specie contributions are superannuation contributions that are made using assets other than cash. An in specie contribution can include shares, managed funds and real estate. An in specie contribution can be accepted by a superannuation fund if it is permitted within the superannuation fund’s trust deed.

How does an in specie transfer work in superannuation?

This transfer is in addition to the conventional contributions that you make to your superannuation. In-specie transfers into your superannuation fund involve the transfer of an asset into your fund without it first being liquidated into cash.

What does in specie mean in Super Fund?

In specie is a Latin phrase meaning ‘actual form’. As with all things super, strict rules apply. For one thing, any in specie asset transfers must be done at current market value. In specie transfers are a strategy more commonly used in self-managed super funds (SMSFs) than public super funds.

When do you make an in specie contribution to an SMSF?

An in-specie contribution occurs when a member transfers ownership of an asset they own to the SMSF. In this case, the capital value of the fund has increased and the increase in value is considered a contribution for the member whose member balance has grown. While most superannuation funds can accept in-specie…

What’s the difference between specie transfer and pension contribution?

In specie contributions are where an asset from outside of a pension scheme is transferred into a pension scheme instead of selling it and using the cash proceeds to fund the contribution. This is much less common, with very few companies willing to accept in specie assets as pension scheme contributions.