QROPS / ROPS and budget

Jona

So, a transfer to a QROPS/ROPS whilst remaining as UK tax res means a 25% tax charge on the transfer value (i.e. LTA charge).

Moving to the country in which you've just transferred your UK pension (as long as EEA) means no 25% tax charge on the transfer, but you will pay 25% tax on any benefits drawn in the first 5 years (until fully non-UK res).

Anyone reading it differently?

PeterM

Jona said:

So, a transfer to a QROPS/ROPS whilst remaining as UK tax res means a 25% tax charge on the transfer value (i.e. LTA charge).

Moving to the country in which you've just transferred your UK pension (as long as EEA) means no 25% tax charge on the transfer, but you will pay 25% tax on any benefits drawn in the first 5 years (until fully non-UK res).

Anyone reading it differently?

I took it as any money drawn in the first five years would be taxed at UK tax rates regardless of where the member stays as opposed to  flat 25%.

Not seen the details as yet though.

Anna

Have a look at yesterday's webinar by 7IM and Technical Connection - they discussed it in detail.

Here is the link here