Now that Brexit looks to become a reality, what are the effects Brexit will have on UK pensions? Brexit most likely will have a huge impact on British expats with a UK pension. Many British expats have transferred their UK pension to QROPS (Qualifying Recognised Overseas Pension Scheme) in order to save tax on their pension and enjoy more flexibility and freedom to do with their pensions what they want but tens of thousands still have not done so.
QROPS was incepted due to an EU directive under free movement of capital. The British Government has never been a fan of QROPS as the transfer of UK pension plans abroad meant less tax revenue for the UK. Now that the UK is set to leave the EU, one of the first things the Government will put a halt to is the possibility to transfer UK pensions abroad. The UK Government has already stopped the possibility of transferring public sector pensions such as NHS, police, armed forces.
If you are a UK expat and you have one or more private or occupational pension plans, a QROPS pension transfer can offer you the following:
-Lower or No Tax on Pension Income,
-Several Pensions Can Be Consolidated in One QROPS
-QROPS Can Be Structured in Any Currency With Pension Income Paid Out in That Currency, Therefore Reducing Currency Exchange Cost and Risk
-Greater Control Over Where Your Pension Fund is Invested
-The Possibility to Leave Your QROPS pension To Your Beneficiaries Upon Death, Free From UK Inheritance Tax.
-Out of Scope of Future Changes in UK Pension Legislation
-Lower fees
www.qropspensionservice.com
