UK Pension Rules
by Alexander Beard, on Apr 18, 2017 9:33:48 AM
In the UK Budget handed down in March new rules relating to the transfer of UK Pensions were announced and subsequently legislated.
The HMRC directive (stating UK pension transfers should only be made to the country in which the member resides) will now be enforced by new legislation introduced in the Finance Bill 2017, effective to all transfers requested on or after 9 March 2017. In addition, all transfers to a QROPS on or after 6 April 2017 are now subject to the new UK taxing provisions in the five tax years following the transfer.
Who will be impacted by the changes:
Individuals with UK pensions intending to transfer those pensions outside the EEA to a pension scheme in a country other than their country of residence will be affected. All transfers from 9 March 2017 will be subject to the new tax.
If you reside in the same country as your QROPS transfer, you will not be impacted by this new tax, however, if you have already made a QROPS transfer and your scheme is currently on the HMRC ROPS list, then in order to remain on that list, the scheme will need to make a declaration to HMRC by 13 April 2017. For Australian residents this action will be undertaken on your behalf by the Trustees of your scheme, unless you operate a Self Managed Superannuation Fund, in which you case you will be required to take the appropriate action.
Alexander Beard Group provide advice on all aspects of UK pensions for non-residents and has developed proven and compliant strategies to assist you in maximising the potential of your UK pension. For enquiries please contact Dave Stone at our Australian office: email@example.com or +61 8 9227 1686.
Managing Director - Australia