Can clients 'double dip' on tax-free cash by transferring overseas?

Rules could shake up the QROPS transfer market

clock • 4 min read

Rachel Vahey looks at new taxation rules which could spark a resurgence in QROPS use, however, she warns the shake-up has a whiff of an unintended consequence about it...

In a matter of weeks, we will have a new pensions tax regime. As we pore over the latest rules and guidance, one area that has caught advisers' (and their clients') attention is overseas transfers. At one time, transfers to qualifying recognised overseas pension schemes (QROPS) were considered a financial planning strategy. But in recent years, the number of transfers has fallen sharply. In 2014/15 there were 20,100 transfers totalling £1.76bn of pensions wealth. This fell to only 3,300 last tax year representing £680m. The introduction of the overseas transfer charge in 2017 was an o...

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