Hypothetical here.
If I have 50k pounds in a private pension in the UK, and reach 55 I can cash this out (25% tax free and the rest taxed in the UK). Will the ATO like to take more of this?
Having trouble finding answers, I don't really want to transfer it as then it is stuck till I am 60.
Any advice please
In simple terms the answer is YES although the UK tax you pay should be allowed as a credit. The ATO will not view the 25% as tax free. If it was a state pension paid by UK government you would be allowed a deduction for the return of your own capital known as undeducted purchase price (UPP) but I don't believe that this applies to private pensions.
This is a very specialised area and you really need to take professional advice.
It's best to see the advice of a professional accountant.
In saying that Australia and the UK should have a Dual Tax Agreement.
You can read more about tax treaties here.
https://www.ato.gov.au/General/International-tax-agreements/…
I still will remain firm you should go see an accountant.