Pension Transfer Alternative
Some UK pension transfers are now subject to a 25% tax charge whereas pension transfers to certain countries are not.
It is widely expected for the UK Government to come with further restrictions to halt the flight of pension capital abroad and with that tax revenue. Luckily, sometimes when one door closes, another one opens as is the case here. UK pension holders who no longer live in the UK can now legally still benefit from most of the advantages a pension transfer can offer but without being subject to the 25% tax charge. This is also valid for pension transfers to non EEA countries which normally would be subject to the 25% tax charge. You also no longer need to transfer your pension funds to some distant offshore jurisdiction! This type of transfer would also not be deemed distribution if you are a US resident or citizen and is therefore not a taxable event in the eyes of the IRS. The new solution is FATCA compliant.
If you are resident in the UAE, there are now ways to take your entire UK pension as a tax free lump sum from age 55. Pension income from your UK pension can now also be totally tax free. This due to the new Double Taxation Agreement (DTA) which came into force in March of this year.
There are nearly as many different solutions as there are countries/jurisdictions so the best solution under your personal circumstances will have to be assessed on a personal basis. If you have any questions or would like a free personal assessment based on your circumstances by UK based and UK regulated financial advisors, do not hesitate to contact us.
We look forward to hearing from you. Simply complete the contact from on our main page www.qropspensionservice.com