HMRC updates overseas pension guidance – everything you need to know about UK tax rules | Personal Finance | Finance

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Pension plans primarily based overseas can solely obtain a UK tax-free switch from a registered pension scheme if it’s a qualifying recognised overseas pension scheme (QROPS). Owners of those schemes will need to inform HMRC about funds from these financial savings plans which have obtained UK tax aid.

HMRC has an inventory of recognised overseas pension schemes (ROPS) which have instructed the Government they meet the circumstances to be a recognised scheme.

However, HMRC warned they can’t assure the schemes listed are ROPS or that any transfers to them shall be freed from UK tax.

It shall be up to particular person pension holders to discover out if they’ve to pay tax on any switch of pension financial savings.

Where overseas switch prices apply, the scheme managers should inform members (or the holders) sure data inside 90 days of the switch.

However, they might have to pay tax within the nation they dwell in.

There are exceptions to this, with an instance being that UK civil service pensions will all the time be taxed within the UK.

Full particulars on pension tax preparations might be discovered on the Government’s web site.

Additionally, neutral guidance might be sought from the likes of the Money Advice Service, Pension Wise and Citizens Advice.

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