Why transfer your pension
There are innumerable reasons why you might consider transferring your pension benefits and taking them back under your own control, many of them likely to be philosophical or emotional.
However, we would always suggest undertaking a critical analysis to make sure that any action you take is actually in your better interests.
Nonetheless
- Overseas, you may, in the right circumstances access the fund and take as much as 40% of it tax-free before age 50.
- Overseas, beyond age 50 you may use the balance of the fund for whatever purpose you like; you do not have to purchase an annuity and you are free to arrange any income in the manner that best suits you for tax purposes.
- When you die, the entire fund can pass to whomever you want it to.
What restrictions are there?
In order to access your funds you need to have been non-resident in the UK for 5 full tax years (six actual years in practice).
How is this possible?
In April 2006 Her Majesties Revenue and Customs (HMRC) in recognition of the number of people who have left and are leaving the UK for pastures new, introduced what is known as Qualifying Retirement Overseas Pension Schemes. These as the name suggests are schemes that are approved by HMRC (The tax man).
