Ten industry views on the Qrops hammer blow
By Mark Battersby, 10 Mar 17
As the week comes to an end in which the Spring Budget slapped a surprise 25% overseas pension transfer charge in particular circumstances, here are the views on what it means from a cross section of the industry.
The new rules covering the 25% tax charge on pension transfers have a number of specific conditions. For example, the charge does not apply upfront where the transfer is to a Qrops located in the European Economic Area as long as the client is also a tax resident of an EEA member state.
So both Gibraltar and Malta are not caught so long as these EEA related conditions are met.
The same is true for transfers to a New Zealand or Australian Qrops where the client is a tax resident of New Zealand or Australia respectively.
But as the Isle of Man is outside this area and not a member of the EU, its Qrops will be hit with the overseas transfer charge.
However, there is an overarching catch all part of the new ruling that means if the client’s circumstances change in relation to the exemptions within the first five tax years following the pension transfer the charge will apply at that point in time.
Click through the slides above to read what advisers, lawyers and product providers have to say about this important new development of the Qrops regulatory environment.
