UK Budget 2017 - Qrops pensions change
Posted in Oz forum too, but wanted to make people aware:
Budget 2017: HMRC introduces 25% tax charge on Qrops transfers - Citywire |
Re: UK Budget 2017 - Qrops pensions change
Does any one no what this means in HMRC|
Payments out of funds transferred to a Qrops on or after 6 April 2017 will be subject to UK tax rules for five tax years after the date of transfer, regardless of where the individual is resident,’ HMRC added. My wife is hoping to retire in the first 3 years of us moving there in a couple of months? Thanks |
Re: UK Budget 2017 - Qrops pensions change
Originally Posted by patpending
(Post 12205442)
Does any one no what this means in HMRC|
Payments out of funds transferred to a Qrops on or after 6 April 2017 will be subject to UK tax rules for five tax years after the date of transfer, regardless of where the individual is resident,’ HMRC added. My wife is hoping to retire in the first 3 years of us moving there in a couple of months? Thanks However, any pension payments taken from the QROPS pension during the first 5 years following transfer will be taxed by HMRC. Is this how you understood it? |
Re: UK Budget 2017 - Qrops pensions change
Have a look at this sticky thread by Chch4me. <--- click link
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Re: UK Budget 2017 - Qrops pensions change
Hi there,
Yes this is how I understood it...but I thought I heard some where that if you are still resident after 5 years of drawing the pension then you could claim the tax back from HMRC....or am I dreaming! |
Re: UK Budget 2017 - Qrops pensions change
Also, does anyone know how we stand on the 25% tax free lump sum? If we want to draw a pension after three years. I understand we will now be taxed 25% but what about the lump sum that we can take here in the UK? Does any one know if this can be taken once in a qrops in NZ ?Thanks
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Re: UK Budget 2017 - Qrops pensions change
Originally Posted by patpending
(Post 12205909)
Also, does anyone know how we stand on the 25% tax free lump sum? If we want to draw a pension after three years. I understand we will now be taxed 25% but what about the lump sum that we can take here in the UK? Does any one know if this can be taken once in a qrops in NZ ?Thanks
The UK Budget announcement regarding transfers was a complete surprise to all involved. The good news is that if you are living in NZ and transfer your pension to a NZ Scheme then there is no "Overseas Transfer Charge" (ie 25% tax penalty). When it comes time to make a withdrawal, you will be able to withdraw a Pension Commencement Lump Sum (is 25% tax free Lump Sum) without any penalty. Our understanding is that you will also be able to withdraw an Annual Income up to certain limits without any penalty. With all the changes going on and the interaction between both NZ and UK rules, it is more important than ever to seek appropriate advice from a specialist. Warm regards chc4me |
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