Can clients 'double dip' on tax-free cash by transferring overseas?

Rules could shake up the QROPS transfer market

clock • 4 min read

Rachel Vahey looks at new taxation rules which could spark a resurgence in QROPS use, however, she warns the shake-up has a whiff of an unintended consequence about it...

In a matter of weeks, we will have a new pensions tax regime. As we pore over the latest rules and guidance, one area that has caught advisers' (and their clients') attention is overseas transfers. At one time, transfers to qualifying recognised overseas pension schemes (QROPS) were considered a financial planning strategy. But in recent years, the number of transfers has fallen sharply. In 2014/15 there were 20,100 transfers totalling £1.76bn of pensions wealth. This fell to only 3,300 last tax year representing £680m. The introduction of the overseas transfer charge in 2017 was an o...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Government confirms no compensation for WASPI women over state pension age changes

Government confirms no compensation for WASPI women over state pension age changes

DWP finds communication delays did not amount to financial loss

Martin Richmond
clock 17 December 2024 • 4 min read
Chancellor's move to pause Pensions Review 'deeply disappointing'

Chancellor's move to pause Pensions Review 'deeply disappointing'

Rachel Reeves has reportedly pressed indefinitely paused the review

Jenna Brown
clock 16 December 2024 • 3 min read
FCA targets pension transfers and SIPPs in major review

FCA targets pension transfers and SIPPs in major review

Regulator launches review of DC pension rules

Isabel Baxter
clock 13 December 2024 • 4 min read