BritInFinland

I am 56 years old and I have a UK pension policy that ran from 1991 to 1999. I would like to take some or all of the funds in cash, under the new rules that came into effect this April. The policy is with Scottish Widows and they say that because the policy has a guaranteed annuity rate I need to receive advice from an IFA before I can withdraw the cash. My problem is how to do that, since I am not in the UK. I need someone who I can deal with by phone & email.

I have contacted some IFAs. They say they cannot help. Are there any IFAs who could deal with this issue without needing a personal visit?

Scottish Widows say it would be acceptable to consult the equivalent of a UK IFA in Finland, where I live, provided I supply their registration details. However I have contacted my bank and insurance company here and both say there is no equivalent of a UK IFA in Finland. Even if there were such advisers here I doubt they would not know much about UK pensions.

Any advice on how I should proceed?

Looper

I can't help you but maybe you can help me?!

I started a thread here:-

http://britishexpats.com/forum/uk-pe...-expat-864759/

Sounds like you are in a similar position to me.

I had a UK private pension between 1997 and 2000

I left UK in 2000

My pension has just been parked there for 15 years.

I am hoping when I turn 55 or 60 whenever I can use it as a pension fund even though I left the UK a long time ago.

From your post it sounds like I should be able to do that - if I get this IFA hurdle sorted out.

??

john in oz

Sorry for late response -

we have a UK Adviser that we work with that can assist you in the provision of advice etc for you and specialises in this area - simply contact me and we will organise details for you to contact them directly so you can organise the release of your funds.

Many thanks

BritInFinland

I see you have already had a response from a far more authoritative source than I, but I will comment anyway since you asked.

AIUI The UK pension rules changed this year so that anyone aged 55 and over can take their pension funds as cash. There are a couple of caveats though, in addition to the obvious loss of the pension the fund would produce if you left it in place. The first is that you can only normally take 25% free of UK tax(*). The rest is subject to UK tax. I would expect you to be able to avoid paying that, or at least to claim it back, if you are not a UK tax payer but I don't know the mechanics of doing that. The tax issue might then be raised in your new country, and some or all of the cash you take may be taxed as income. You need to understand your local tax laws I guess.

The issue with the IFA I am facing does not (I believe) apply in all cases. It depends what sort of policy you have. In my case my policy has a guaranteed annuity rate and that means I need to consult an IFA. I don't know what other conditions would trigger this requirement; maybe some public sector schemes require it. Your pension company would tell you if you need to consult an IFA. If you don't actually want the advice and the pension company don't insist on it, there is no need for an IFA.

(*) You may be able to take more than 25% free of UK tax. I was a "20% director" and supplied some income figures from the period when my pension was active. Based on this my pension company calculated a different sum that I can take tax free and this equates to 59% of the value of my fund. My pension company had a "Tax free calculation requirements" form for this calculation; I assume yours would have something similar.

BritInFinland

Thanks. I'll send you an email.

john in oz

No worries - to further to add to the above. The new rules require you to obtain advice on transfer of any funded defined benefit scheme Public or Private over 30 K GBP. Therefore , they are insisting that you obtain IFA before they will allow you access to funds.

You do not require IFA advice if it is a private fund or a fund that is not a defined benefit scheme (final salary scheme) however advice should be sort especially where large sums are involved.

There is no tax payable on a direct transfer to OZ to the UK Government. You may however pay some tax on any earnings in the fund whilst a resident of OZ only (not the entire balance). At pension time it is Tax Free in OZ.

cheers

BritInFinland

Just a quick update on this: no progress! I am still unable to find an IFA who is willing to act as my adviser, so I cannot make any headway. Is there nobody who has faced a similar problem?

john in oz

As advised by our UK adviser they do not deal with small amounts and therefore can not assist. I have asked him to provide you a POC if he can to assist you. Cheers John

chriscoombs

Hi - I am in the same position. I contacted a recommended IFA who then wanted 2% of my fund value. I am now using someone called Pentech who are charging UKP1200 for a report for me in order to move my pension from UK to a QROPS in Gibraltar. My local IFA in South Africa is handling it for me with Pentech (and the IFA is paying the UKP1200) which will be refunded from the pension fund once transferred. I got to Pentech via Sovereign Group...

BritInFinland

Thanks Chris!
You have a PM.