Advisers have been left wondering where the next qualifying recognised overseas pension schemes (QROPS) scandal will come from after a series of clamp-downs by HMRC.
The Revenue is currently consulting on creating a blacklist of risky overseas tax avoidance schemes, rather than investigating schemes reactively. Some industry experts believe this could spell major trouble for QROPS in New Zealand, which could be next on HMRC’s hitlist. Geraint Davies, managing director of Montfort International which specialises in QROPS advice, warned the schemes are being used in New Zealand to “wash out” pension pots tax free. He added this “smash and grab” approach, in which people are able to withdraw their pension funds over a weekend, often comes with 15%...
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