The government has confirmed it will change the way qualifying recognised overseas pension schemes (QROPS) are taxed, with the aim of limiting inconsistencies in the tax treatment of UK and foreign pension savings.
The Finance Bill, issued on 5 December 2016, confirmed the government would bring the tax treatment of QROPSs in line with UK registered pension schemes. From 6 April 2017, 100% of the income received from a QROPS by an individual who is a UK resident for tax purposes will be subject to UK income tax, it said. Currently only 90% of QROPS income is subject to UK income tax, meaning higher-rate payers are taxed at only 36%, which will become 40% following the changes. Old Mutual Wealth personal financial planning expert Rachael Griffin pointed out QROPS are now a mainstream pension s...
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