We use cookies to track usage and preferences. See Cookie Policy
Pocketmags Digital Magazines
US
Pocketmags Digital Magazines

PAY AS YOU GO

As the dust settles following the announcement of a 25% overseas transfer charge in the spring Budget, advisers are starting to think about how they can continue to engage with their clients who have UK pensions

Technical briefing Overseas transfer charge

David White Partner, The Qrops Bureau

‘AN INDIVIDUAL WITH A UK PENSION WOULD NOT MOVE TO SPAIN, FOR EXAMPLE, TO SAVE TAX ON THEIR PENSION INCOME’

One of the exceptions to the overseas transfer charge (OTC) is when the client is a European Economic Area (EEA) resident and the transfer is being made to an EEA-based Qrops.

One reason for this exception is likely to be that the UK’s HM Revenue & Customs would not be permitted to restrict European Union pension transfers under freedom of movement of capital rules. Another is that the levels of income tax in most EEA countries is broadly in line with the UK.

The OTC has been brought in to reduce tax avoidance. An individual with a UK pension would not move to Spain, for example, to save tax on their pension income. The transfer charge can be reviewed if the member moves within five complete tax years of the date of transfer – the ‘relevant period’.

READ MORE
Purchase options below
Find the complete article and many more in this issue of International Adviser - International Adviser May 2017
If you own the issue, Login to read the full article now.
Single Issue - International Adviser May 2017
FREE

View Issues

About International Adviser

Including… Aspirations of the merged Standard Life/Aberdeen behemoth to pile into the US market, in-depth analysis of the 25% Qrops charge, top Miami-based adviser and professor Deena Katz’s take on training, and how domestic reforms are powering economic opportunities in India.
Ways to Pay Pocketmags Payment Types
At Pocketmags you get Secure Billing Great Offers HTML Reader Gifting options Loyalty Points