QROPS Changes Budget 2017
QROPS Tax Changes 2017
In the spring budget of 2017 it was announced that some QROPS transfer would be subject to a tax charge of 25% of the transfer where other QROPS transfers would not be affected.
Pension transfers from the UK to a QROPS in one of the EEA countries ( EU countries plus Norway, Iceland and Liechtenstein) where the pension saver is resident in one of the EEA countries will not incur a tax of 25%. For example a German resident transfers his or her UK pension to a QROPS in Malta, no tax charge applies
Also pension transfers to a jurisdiction where after the transfer both the pension saver and the overseas pension scheme are in the same country, will not incur a tax of 25%. So if a resident of New Zealand transfers his or her UK pension to a QROPS in New Zealand, no tax charge applies.
The charge will apply if for example a resident of Thailand transfers his or her UK pension to a QROPS not based in Thailand but for example in New Zealand or Malta. In such a case a tax charge of 25% will apply. The tax charge will be deducted by the UK scheme before the transfer is made. This will only count for pension transfer requests made on or after March 9 2017.
These changes and the likelihood that more changes and restriction will be imposed in the near future mean that it is now more than ever highly advisable to get a professional pension review by a qualified and regulated pension specialist, before it is too late.
We can assist you with a FREE, no obligation pension review. Simply complete the contact form on this page and a qualified and regulated pension specialist will contact you to discuss your options: