What UK pensions can be considered for a QROPS Pension Transfer?
The following recognised pensions can be transferred:
- Personal Pensions
- Ex work frozen Pensions
- Money Purchase
On emigrating from one country to another, one of the most important things to consider is the effect on personal finances. With this in mind, many people do not understand the ramifications on leaving one financial system and entering another and are hence unable to make informed financial decisions. In addition, many people do not have the time to undertake the required research to ensure their position is optimised financially.
This lack of time and information can mean significant and un-necessary tax bills due to changes in tax residency status, different tax years, and visa and residency rules. Further, the related hassle involved in undertaking the move itself, means that in many cases the decision on how and when to act with regards to your finances tends to be left behind in the rush.
Should I leave pensions in the UK?
In most cases, emigrants can transfer their UK Company and personal pension assets with them (if not already in payment). This includes pension schemes from previous employments. In some cases, transferring abroad will create significant tax benefits like GMP or final sallery related pensions which under new rules cant be moved unless some ill health related issues arise then in somecases a rare transfer with a UK IFA is only the best option. Professional advice is recommended. Money purchaise schemes like SIPPS or personal pensions insome cases Ex work pensions are viable.
How can I get the best exchange rate on currency transfers?
Being a completely independent firm, we do not tie ourselves to any one currency provider. You should consider the full range of options available. Although we do not give advice, we do have information on the best rates available in the market. You should also be aware of potential taxation issues on transferring currency abroad.
What do I do about Bank Accounts and Credit Cards?
Many options exist on emigrating. This is an important factor in view of any currency exchange you may be undertaking, and in having access to Australian or NZ Dollars and an Australian or NZ bank account on arrival. We would be pleased to provide you with a full range of options and generic and impartial information in this respect.
Should I leave my investments or property in the UK?
In many instances, the taxes associated with these can be significantly minimized on emigrating based on when and how you act. The risks and opportunities are generally caused by changing visa and tax legislation and the fact that tax years overlap for each of these countries. It is important to have a clear understanding of these situations well before you emigrate, in order to maximize the after tax value of these assets, and in many cases save the taxation on these altogether.
What should I do with Endowment policies?
The right decision varies based on each person’s circumstances (tax rates, exemptions, bonuses, policy conditions etc). Some people’s endowments should be cashed in/traded while others must decide how long to keep paying premiums into the policy.
The Inheritance Tax Problem
If you are from the UK, it is likely that Inheritance Tax will carry over to your new country with you. This tax applies at 40% of your estate value above the UK nil rate band.
Quite simply, if your new country has no Inheritance Tax it will not have solicitors or financial advisers who are trained in the issues of how and when to act, nor does it have Inheritance Tax structures to protect against Inheritance Tax.As such, any advice and strategy to protect against this liability will generally need to be developed in the UK.The problem is, that once you change your tax residency, any Inheritance Tax strategy in the UK is unlikely to be appropriate under both UK and foreign tax laws.
By creating cross border strategies which protect you across the two jurisdictions, you can protect against the impact of this liability.
The Financial Conduct Authority does not regulate inheritance tax planning.
What is an Actuary?
Actuaries are the only profession allowed (by law in the UK) to calculate Cash Equivalent Transfer Values (CETVs). CETV’s are the lump sum figures that a final salary scheme quotes you. Should you wish to transfer out of the scheme (for example if you want to transfer your scheme abroad).
The fact that our specialist network includes qualified Actuaries and financial advisers means that a high level of expertise can be added to any pension transfer analysis. This helps you to understand that fairness of your transfer value, and to know whether a transfer of your final salary benefits abroad is actually in your best financial interests. EPP wealth ltd do not provide standalone actuarial services to clients, but work with qualified actuarial staff who provide input into your pension transfer process.
The Financial Conduct Authority does not regulate actuarial services.