Questions of Cash: 'I transferred my Isa and now it's vanished without a trace'

Our reader is losing interest on their savings and fears that a fraud has taken place

Destination Australia: will your pension travel well if you migrate across the world? (Getty Images)

Q. I recently requested the transfer of my Isa from Barclays bank to Virgin Money. I have yet to obtain confirmation that the transfer has been made, or what my balance is. Each bank has told me on the phone that the other has the money. I am losing interest on my savings and I fear that a fraud has taken place. FT, Manchester

A. This was not fraud but an administrative mix-up.

We contacted both Virgin Money and Barclays to resolve the issue. A spokesman for Virgin said: "While we are sorry for any inconvenience caused to the customer, as the receiving party in this case, Virgin Money does not feel it is at fault for the protracted transfer of funds.

"We did not receive the funds [for 20 days], due to an error with the customer's national insurance number. That said – and once corrected and once the funds were received – as a gesture of goodwill we immediately backdated the interest on the customer's account to 2 October 2015 [the intended date of transfer] to ensure there was no loss of interest."

Virgin Money said the amount transferred from Barclays was £23,423.45.

A spokesman for Barclays said: "Having completed a further investigation, we have established that an error [was] made when releasing the funds to Virgin Money and they were not automatically transferred. As a result, a cheque was sent to Virgin Money on 15 October, together with 8 per cent compensatory interest for the period 2 to 23 October totalling £90.35. An offer of £100 as a gesture of goodwill has also been made."

You tell us you are content with this.

I bought boots and my money walked away

Q. I recently made an online order via credit card for Ugg boots from Australia AB Ugg Boots, which has an Australian internet domain address. The advertised price, with shipping included, was £64.99. But my account was debited by £67.63, billed initially in the Chinese currency. The "transaction fee" charged by Visa for this exchange was £2.02.

I have now been told the boots are unavailable and that a refund of £64.99 will be paid – which I have not yet received. LB, Pembrokeshire

A. As your payment was made by credit card, we contacted the card issuer, HSBC, to request a chargeback for the full payment. It then contacted you to say the £64.99 had been credited and it will make up the difference.

We contacted Australia AB Ugg Boots, whose spokeswoman said: "The extra price has nothing to do with the merchant. Causes of price difference are cross-border fees for international transactions and currency exchange rates. Hope you can understand."

While this problem is now resolved and this trader has acted correctly, we would suggest caution in the online purchase of what are described as "Australian Ugg boots". There have been a number of reported scams related to this trade, often involving the sale of poor-quality items.

Will going down under affect my pension?

Q. We are considering paying for the contributory parent visa to migrate to Australia to be with our family.

I have a self-invested personal pension (Sipp) and took the tax-free 25 per cent lump sum four years ago. I have not bought an annuity and have not drawn any monthly income, so the other 75 per cent is still invested.

If I became an Australian resident, can I transfer the balance of my Sipp without paying UK tax? Will it be liable, after transfer, to Australian tax when I draw on it? Do I need to hold the funds in an Australian pension scheme? Do I need to live there for six months before I can draw on it?

If so, would it matter that I am using the contributory visa, where you in effect pay half the money to migrate for two years, then upgrade to full residency and pay the remaining half? PJ, by email

A. Stephen Humphreys at the accountants Moore Stephens said it is possible to transfer your UK Sipp to Australia, even though you have taken the lump sum.

He explained: "The transfer must be made to a qualifying recognised overseas pension scheme (QROPS), the only sticking point being that many Australian QROPS have recently been deregistered because, in certain circumstances, they allowed people access to pension benefits before the age of 55. Provided you can find a suitable QROPS, you will be able to transfer your plan without any UK tax charges.

"There are limits to how much you can transfer: currently, A$180,000 (£86,oo0) a year with an initial A$540,000 (three years in advance) is possible until you are 65. You can then make further transfers of A$180,000 a year, or the next three years in advance again.

"The six-month rule is an Australian tax rule since, unlike with UK pensions, there is a 15 per cent tax charge on the growth in the pension fund.

"If you transfer your fund within the first six months of becoming resident in Australia, this tax charge is waived. If not, you will be liable to Australian tax on the growth in your UK pension fund for the period you are an Australian resident when you eventually transfer. But the advantage of the Australian system is that when you reach retirement age you can take pension benefits free of tax even if this is the entire pension fund."