I’m not one for scaremongering, but for once there is a genuine deadline to take action for people in certain UK pension arrangements. If you are an expat with a UK occupational pension, often known as a Final Salary scheme, then you need to be aware of these changes.
All UK pensions have tax deducted at source when in payment, so even if you are living abroad and not subject to UK tax, not only will you be taxed on the pension income, you will also be at the mercy of exchange rates when it comes to the pension being paid to you.
There has been a fair bit of publicity about occupational pension schemes, but this issue has
This option should be of particular interest to anyone who has worked in the UK for a few years and accrued any pension benefits without a plan to return or retire to the UK. There are also other options for people who want to take control of their own retirement funds.
Before any changes are made it is important to assess not only current circumstances and future plans, but also potential tax positions and appetite for risk in the context of someone’s full financial situation.
Any QROPS should be set up in a secure, tax efficient jurisdiction, but a transfer doesn’t necessarily mean there is no contact with HMRC. Certain rules still apply to offshore schemes, especially when taking benefits, and breaking them can lead to a huge tax penalty. They can be a highly tax efficient way to manage a pension, but must be set up and managed properly.
QROPS have obvious tax benefits, especially if the pension is transferred to a lower tax environment, and gives the option to choose to have your pension income is paid in the currency of the country you live in, which removes currency risk.
Another rule change that has received rather more publicity is one that will allow people to
If you have benefits in a UK pension scheme and would like to look at your options then please contact me for a no obligation review. Whilst April 2015 may sound a long way off the administrators of occupational pension schemes, particularly public sector ones, are usually slow in responding to requests for information and then effecting the transfers so it is important not to delay.
Contact me on keren@holbornassets.com