The Budget 2017 has certainly been making waves with the announcement that QROPS (Qualifying Recognised Overseas Pension Scheme) transfers for individuals who are not in the European Economic Area will be hit with a 25% tax charge.
The idea of the transfer charge is to ‘create fairness in the tax system’, and is set to net the Treasury £60 million pounds a year by 2021/2022. Those affected include expats who are seeking to reduce tax payable by moving their pensions to another jurisdiction.
Unless certain conditions apply, expats transferring to QROPS will already be subject to the 25% tax charge, which came into effect as of March 9th 2017. The HMRC says ‘Payments out of funds transferred to a QROPS on or after 6 April 2017 will be subject to UK tax rules for five years after the date of transfer, regardless of where the individual is resident’.
Get the guide to QROPS New Rules below.
For advice speak to your Globaleye Adviser or contact firstname.lastname@example.org to find out how you can avoid paying unnecessary tax.