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Pension Pot disintegrating - Why not move it abroad

Blondies Manchester accountant Steve Claffey has been at the safeguards for those deciding to retire abroad, particularly the issue of pensions.

In the right circumstances, it is well worth examining the opportunity to transfer your UK pension overseas – not least because you will benefit from a lower or even Tax Free pension.


The safeguard is that we at Blondies Accountants in Manchester now have access to QROPS – a qualified recognised Overseas Pension scheme. All members are secure in the knowledge that it you do not have to have a pension scheme necessarily registered in your country of residence.


If you are lucky enough to be retiring, or intend retiring to one of the more popular destinations for UK professionals, for example France or Spain, then move your pension to a friendly tax jurisdiction – The Channel Islands been a very safe haven legislation and security wise for such a move.


Anyone wishing to access the Nuts and Bolts then get in touch with Steve At your local accountants in Manchester, Blondies.


Furthering the example, Spanish taxation on annuity income is at a particularly reduced rate, has been for some time, and that is very unlikely to change – they want us there in retirement.


Those more knowledgeable in these matters may well say, but we have no Tax treaty with Spain! However, this becomes Irrelevant once a pension has been transferred to a QROPS.


The only taxation (or lack of it) is levied in the Country where the QROPS pension scheme has been placed.


Further afield, Hong Kong has a top Tax rate of only 16% and our foreign pensions under QROPS are not even Taxed – NIL!


There are one or two pitfalls to be aware of. For example where Lump sums are taken from pensions – be sure to be aware of UK HMRC rules which would override the QROPS. One of the core criteria is the 5 year rule which applies to Lump sums – in this case you must have been non resident for five years to be free of the HMRC claw back.


Be sure to consult first with your Manchester Accountant Blondies, who guarantee the same Fixed fees as promoted throughout our website for substantive cost saving advice at Value pricing. As each country has its own rules, this specialist financial advice is essential.


A word to the wise, as with any scheme with attractive tax savings, HMRC are giving WQROPS ongoing attention and monitoring. They have noted how heavily marketed the QROPS schemes now are, and there is evidence of careless and inappropriate advice been given to secure upfront fees.


Hence some QROPS are losing the Taxed approved status from HMRC and naive clients paying up front for these services have both lost their fees and their tax savings as HMRC retrospectively pounce.


At Blondies accountants in Manchester, we charge nothing until your Tax free of Tax reduced pension is signed, sealed and delivered; without the slightest blip on the HMRC radar.


For more information please contact Steve Claffey at Blondies Manchester accountants.

 

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