Where Is Your Client Resident?

Technical disclaimer – This section of the website is only directed at financial advisers, professional, institutional or qualified investors and is not suitable for retail investors.
If you remain on this page, you understand and declare that you qualify as one of the above and that you are not a retail investor as defined in the relevant jurisdiction legislation.

General rule of thumb

Before taking benefits

A client should consider the option of transferring their pension to a QROPS if:
– they are resident in a jurisdiction that has a local retail QROPS available; and
– they intend to remain in that jurisdiction for the next five full tax years

If the client is not intending to maintain their current residency for the next 5 full UK tax years, they will need to consider if the jurisdiction they are moving to also has a retail QROPS available.

If none of the above applies, then the client needs to consider leaving their pension in the UK, in a product such as a SIPP, otherwise a transfer may be subject to a 25% tax charge. This may be in the clients best interest if:
– they are concerned that further detrimental changes may occur to the QROPS legislation; or
– if they know the 25% transfer tax charge will be a better option for them

On taking benefits

At the point of taking benefits and the client is resident in a jurisdiction that has a local retail QROPS available (not subject to the 25% tax charge), it may be in the clients best interest to consider a transfer to that QROPS.

If at the point of taking benefits the client is resident in a jurisdiction that does not have a local retail QROPS available to them then the client would need to consider:

– taking benefits from a UK SIPP with tax under UK PAYE (up to 45%); or
– if there is any effective DTA in place compared to taking a transfer to a New Zealand QROPS (with a flat 25% tax charge), taking the benefits from there at 0% New Zealand tax.

** Only available from the age of 55 **

Any UK taxable withdrawal over £60,000 could generate a higher effective tax charge than the 25% transfer tax – please see our  “Tax Calculator Comparison”.

Here you will find guides to suggested products and benefits that apply to residents in the jurisdictions which are popular for many expats to retire to.