Proposed Changes to QROPS Rules – UK Autumn Statement 2016

Autumn maple leaves on background

Proposed Changes to QROPS Rules – UK Autumn Statement 2016

10:08 27 November in Blog

In the Autumn statement released on 23rd November 2016, Phillip Hammond outlined possible changes to the QROPS environment, as follows:

‘Foreign pensions – The tax treatment of foreign pensions will be more closely aligned with the UK’s domestic pension tax regime by bringing foreign pensions and lump sums fully into tax for UK residents, to the same extent as domestic ones. The government will also close specialist pension schemes for those employed abroad (“section 615” schemes) to new saving, extend from 5 to 10 years the taxing rights over recently emigrated non-UK residents’ foreign lump sum payments from funds that have had UK tax relief, align the tax treatment of funds transferred between registered pension schemes, and update the eligibility criteria for foreign schemes to qualify as overseas pensions schemes for tax purposes.’

These changes will have an impact on those who have transferred funds abroad, as well as those planning a pension transfer abroad in future. Further detail is expected to be released in the UK Finance Bill, set down for early 5 December 2016.

For further information on how you may be impacted, please contact us.