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...

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

Join

 

Already a Professional Adviser member?

Login

More on Pensions

A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

A 1000-day wait: Pension transfer delays demand urgent reform, advisers say

Transfer delays highlight need for ten-day Pension Switch Guarantee

Sahar Nazir
clock 29 April 2025 • 2 min read
Sipps: How clients can avoid common retirement planning mistakes

Sipps: How clients can avoid common retirement planning mistakes

'Retirement planning stands as a cornerstone of long-term financial well-being'

James Floyd
clock 28 April 2025 • 4 min read
Origo completes pensions dashboard connection

Origo completes pensions dashboard connection

Completed connection ahead of this week’s first deadline

Holly Roach
clock 28 April 2025 • 2 min read