If you are intending to remain a resident in Europe for the next five years, you should consider transferring your UK pension into a Qualifying Recognised Overseas Pension Scheme (QROPS).
Last year, the UK government introduced new rules making it more difficult to transfer your pension from the UK without large tax penalties.
Under the new rules, there is a 25% tax charge for transferring your UK pension to an overseas pension scheme, unless one of five criteria are met, the two main ones being;
- The receiving pension scheme is established in an EEA territory and you are also resident in a EEA territory.
- The receiving pension scheme is established in the same country of your residence.
If one of these criteria applies to you, you can transfer your pension without the 25% tax charge, as long as you remain in the EEA for the next five years.
Should you move to a country outside of the EEA within five years of transfer (the “relevant period”), the tax charge may still apply. However, once five years have passed since the original transfer, the “relevant period” no longer applies and you have the option to transfer your pension to any other QROPS in any jurisdiction without the tax charge applying.
Transfer to Gibraltar QROPS
The Gibraltar Expat Retirement Annuity is a QROPS established in Gibraltar and is a low-cost option for holding your pension for that five-year period. With annual fees starting at just £295 you can make use of the security and stability that Gibraltar will provide for your retirement fund.
If you are transferring from a SIPP, in most cases, you will not have to sell any of your investments, just transfer the ownership of your current investments from the SIPP to the QROPS.
Also, if it is a transfer within the IVCM suite of products, there will be no transfer or set up fees.
To take advantage of this opportunity, contact our Technical team or +971 4429 8686.
Please note: IVCM cannot provide you with financial advice. If you are unsure on the suitability of a transfer to a QROPS, you should seek advice from an appropriately regulated and qualified financial adviser with the necessary permission to advise retails clients in the EEA.