Despite HMRC’s attempts to restrict QROPS, experts feel that the effects of yesterday’s Budget 2012 announcements could in fact increase deand for the offshore pension transfer.
With the new rules forcing jurisdictions to offer QROPS to native residents at the same rate as expats, early views were that this could lead to a drop in interest.
However, since Guernsey has already found a way around this by giving both residents and expats the choice of two different QROPS, financial commentators now feel that the QROPS is again going to see significant demand.
With new measures affecting pensioner’s tax reliefs in the UK, it as never been a better time to look into the QROPS, as Paul Gregson, head of business development at AML Global Solutions explains: “As a result of changes to current tax relief, there has been a sharp rise in the number of people transferring their pensions to HMRC-recognised overseas schemes. Other budget cuts, which could well affect expats, include a new mansion tax on any property worth over £2 million, and the cutting of the tax-free lump sum that can be withdrawn from pension funds upon reaching 55. In this climate, QROPS are looking increasingly attractive for high net worth individuals looking to safeguard and maximise their pension pots.”
Gregson added: “People wanting to move to a QROPS should do it as soon as possible.”
If you are interested in learning more about QROPS pension transfers, and how they can be utilised by you, then visit our Pensions and Retirement Planning section or speak to a recommended financial planner.