Ten industry views on the Qrops hammer blow
By Mark Battersby, 10 Mar 17
As the week comes to an end in which the Spring Budget slapped a surprise 25% overseas pension transfer charge in particular circumstances, here are the views on what it means from a cross section of the industry.
James Badcock, partner at Collyer Bristow, a private client law firm, says:
“The Qrops regime recognises that those moving abroad may have a legitimate desire to move their pension pot from a UK scheme to an overseas scheme. However, the rules have been abused and some providers have marketed Qrops aggressively and led people to use them inappropriately.
“This prohibitive new charge severely curtails the extent to which Qrops will be used, as often people have not transferred pensions to a scheme in the country where they will be living, but to a third territory which is experienced in providing Qrops services.
“There are only 37 countries in the world where there are pension schemes which HMRC recognises as Qrops, and not all of those will be suitable for particular clients, so for those moving outside the EEA it may no longer be possible to transfer their pension.”
