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.
Les Cameron, head of technical at Prudential, says:
“The government has been gradually reducing the attractiveness of Qrops for a number of years but this new 25% charge, which applies to some transfers from 9 March, has come out of the blue.
“Some transfers will still be able to go ahead but others will need to be stopped. Many will no doubt pause transfers until the detail of today’s announcement can be fully considered.
“The last thing anyone wants is to incur an unplanned 25% tax charge or possibly more if their intended Qrops decides to deregister themselves. This is high-value business and time needs to be taken to consider the full impact of today’s announcement.”
