We are dedicated to helping individuals who have lived and worked in the UK and accumulated funds in a UK pension scheme about the options to consider in respect of their preserved UK pensions.
The rules are complex and constantly evolving so you need a trusted adviser by your side that can provide expert guidance in order to avoid potential pitfalls and minimize your tax liability.
If you are considering transferring your UK pension benefits into a QROPS there are two important reporting rules you should know about.
The 5 year rule?
During the first five complete tax years of non-UK residency, pension benefits drawn in excess of those permitted under UK pension rules result in a tax liability of up to 55% of any excess benefit payment received.
The 10 year reporting rule?
During the first ten years from the date that your UK pension benefits are transferred into a QROPS, the trustees of an overseas pension scheme are obliged to report on a yearly basis to HMRC that they are complying with UK qualifying rules. There is an additional requirement to report payments made to the member and/or their dependants from the scheme. These reporting requirements fall away after ten years.
We have a full understanding of how UK taxation may impact your pension. Don’t underestimate the importance of seeking professional cross border tax planning advice and putting in place a tax planning strategy which minimizes your tax liability abroad.
Give us a call +44 207 998 0570 or e-mail enquiries@fwm.gi to book your free, no obligation consultation now!
More about QROPS find here: https://www.fiduciarywealth.gi/what-we-do/our-services/qrops
