Almost half a billion pounds of pension funds were transferred abroad in the first two years after pensions simplification to escape alternatively secured pension tax penalties, A J Bell says.
As part of a Freedom of Information request, the self-invested personal pension provider found more than 7300 transfers to qualifying recognised overseas pension schemes were made in the two years after A-Day - equating to more than three times the number of clients who entered an ASP. Chief executive Andy Bell says: "These figures support our campaign for a change in the 82% tax penalty applied on death in ASP. The introduction of this tax penalty in April 2007 resulted in a 154% increase in the amount transferred to QROPS versus the previous year." He says this is proof that penal t...
To continue reading this article...
Join Professional Adviser for free
- Unlimited access to real-time news, industry insights and market intelligence
- Stay ahead of the curve with spotlights on emerging trends and technologies
- Receive breaking news stories straight to your inbox in the daily newsletters
- Make smart business decisions with the latest developments in regulation, investing retirement and protection
- Members-only access to the editor’s weekly Friday commentary
- Be the first to hear about our events and awards programmes