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.
Do you have any questions about your UK pension or would you like to know more about to out how these QROPS changes affect you? Simply complete the contact form below and you will receive honest, regulated and independent advice so you can make an informed decision.
There are now new pension solutions available where this transfer tax of 25% is not applicable, regardless of where you live. For more information, please complete the contact form on this page.