QROPS / ROPS and budget

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?

Comments

  • 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 Member

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

    Here is the link here

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