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.
Rachel Vahey, product technical manager at Nucleus, says:
“This is a real crackdown on those pension transfers made overseas just to gain benefit of different tax regimes.
From today, any new requests to transfer overseas will face a 25% charge unless the transfer is for ‘genuine’ reasons.
Situations such as where the person wants to transfer their pension to their new employer’s scheme, or to a pension scheme in the EEA are all allowed without charge.
“But where the transfer is to merely take advantage of different pension tax rules the chancellor is coming down heavy.
“Furthermore, he’s awake to the fact that some people will just transfer to one country and then jump onto another and has announced measures to forestall this practice.”
