Pension Transfers for Irish & UK Pensions
For many years, British expatriates and those moving overseas have been faced with difficulties when dealing with Irish and UK pensions. One of the main difficulties has been the tax treatment of Irish or UK pensions. Until now it has been virtually impossible to move a Irish or UK pension to an overseas pension without being forced to pay basic rate tax on the transfer. This is no longer an issue.
In light of European legislation recent changes by Her Majesty's Revenue & Customs have opened up a number of ways for expatriates who have British pension to move them off-shore.
QROPS
A QROPS is a Qualifying Recognised Overseas Pension Scheme that is recognised by and has met the criteria as set by Her Majesty's Revenue & Customs (HMRC). Any QROPS can, therefore, in principle accept a transfer from a UK registered pension scheme.
QROPS Benefits
There can be huge benefits for expatriates who transfer their Irish or UK pensions to a QROPS. However as a QROPS transfer may not be suitable for everyone, you should speak to one of our specialist advisers to discuss your individual needs. Common benefits that clients enjoy include:
- No liability to Irish or UK tax on Pension Income
- No requirement to purchase an Annuity or Alternatively Secured Pension
- Ability to leave remaining fund to heirs – no IHT liability
- Payment possible in local currency – no exchange rate risk
- Investment freedom
- No lifetime allowance charge
Are there any risks?
Anyone considered to have abused the regulations may be subject to severe tax penalties of 55% of the pension fund for an unauthorised pension transfer on any wealth they still hold in Ireland or the UK.
Transferring to a QROPS may result in the loss of certain protected rights, including contracted out rights, or guaranteed rights accrued under a defined benefit scheme.
It is essential that you seek advice from a qualified Holborn Assets Ghana adviser. You can talk to one of our advisers today without obligation.