James Pearcy-Caldwell, CEO of the Aisa Group that includes the OpesFidelio network, made these comments to International Adviser in reaction to last week’s shock announcement from the Chancellor that there would be the imposition of a 25% tax on QROPS transfers under certain circumstances.
There are though specific conditions under which the 25% tax charge is applicable, HMRC’s website stating that:
“Exceptions will be made to the charge, allowing transfers to be made tax free where people have a genuine need to transfer their pension, where:
- both the individual and the pension scheme are in countries within the European Economic Area (EEA) or
- if outside the EEA, both the individual and the pension scheme are in the same country, or
- the QROPS is an occupational pension scheme provided by the individual’s employer
And in addition, if the individual’s circumstances change within 5 tax years of the transfer, the tax treatment of the transfer will be reconsidered. The changes will take effect for transfers requested on or after 9 March 2017.”
See more at: http://www.international-adviser.com/gallery/1034708/industry-views-qrops-hammer-blow#sthash.Va8qHZGC.dpuf