Due to recent developments outlined in HMRC’s Freedom and Choice in Pensions paper that were enacted in legislation from April 6th 2015, transfers will no longer be permitted from the following ‘unfunded’ Public Sector defined benefit schemes:
- Civil Service
- Armed Forces
There is no legislation preventing private sector defined benefit pension scheme transfers. However, quite a few have slowed down their transfer process or provided low transfer values making it inappropriate to transfer. In addition, according to the rules from 6th April 2015, you will require a pension transfer report from a FCA registered adviser, which can be hard to achieve when you live on the other side of the world.
These development have major implications. Clearly time is running out for those considering a transfer of their accrued defined benefit pensions (also known as ‘Final Salary’). Historically, such people could transfer their accrued pensions by transferring into a ‘Qualifying Recognised Overseas Pension Scheme’ (QROPS), a HMRC approved scheme, or a UK ‘Self-Invested Personal Pension’.
Whilst QROPS may not be for everyone, where it is right, it can provide greater benefits and flexibility than UK schemes – significantly reduced tax liabilities, greater investment and currency choice and control over passing your unused pension to your loved ones.
If you speak with one of ICC’s wealth managers, you are guaranteed impartial and confidential advice. They are experts in pension transfers and, where required, ICC has access to UK FCA licensed resources. This is important. The rules can be complex, and there are many QROPS and SIPP providers. Careful due diligence is needed to decide which one is the most suitable for your individual needs.
Pension requirements are usually only a part of your overall financial planning needs. Our Wealth Managers will consider your overall circumstances to give appropriate recommendation as to what to do.
Contact us to arrange an obligation free meeting and understand:
- How can I save up nearly all of my UK taxes
- How can I pass onto my heirs my unused pension funds
- What types of pension can I transfer to QROPS
- What are the risks of transferring my pension
- How can I benefit from greater investment and currency choice (for QROPS)
- Why is not purchasing an annuity a good idea
- Will the UK Lifetime Allowance effect me