Overseas Pension Transfer
Transferring a pension overseas
Thank to the 6 April 2006 pension reforms transfering a pension overseas is now possible. This means that if you are no longer resident in the UK but have a UK pension, you may now transfer into a Qualifying Recognised Overseas Pension Scheme (QROPS).
QROPS
To make an overseas pension transfer you must be transferring your pension fund into a pension scheme that has been approved UK HM Revenue and Customs (HMRC), known as QROPS. Transferring into a QROPS can have have its benefits, depending on your individual circumstances.
Before transferring into a QROPS it is extremely important that you should understand all aspects of the process and the scheme into which you are tranferring, and we recommend seeking proffesional advice before you proceed.
As according to HMRC rules, a transfer into an offshore pension scheme qualifies as a benefit crystallisation event. This means that your UK pension is given a valuation against your lifetime allowance. The allowance currently set is £1.75 million for 2009/10 and £1.8 million for 2010/11.
The possibility of transferring a UK pension overseas and into a QROPS may be attractive to current and future expatriates living abroad in Europe and the rest of the world. You may transfer a UK pension into a QROPS regardless of whether or not you are a UK national.
Overseas pension transfer advice
Speak to the specialist pension advice team from one our partner firms for impartial advice on transfering your pension overseas and enjoy a free initial no obligation consultation.
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