Are your UK pension fund assets greater than GBP1.25M?

Sandy King
QROPS

If so,  Call me now!

Why?

  • Currently any UK funds being transferred to a Qualifying Recognised Overseas Pension Scheme (QROPS) have a Lifetime Allowance (LTA) of £1.5M
  • This means that amount can be transferred into a QROPS without a tax charge
  • Any transfer value over that amount becomes subject to a tax charge of 25% on the excess over the LTA unless the individual has a Certificate of Protection which allows a higher value to be transferred without a tax charge being applied

UK Pension Fund Assets

What happens from April 2014?

  • The LTA reduces to £1.25M
  • Therefore any individual UK Pension Fund Assets transferring a fund in excess of this amount will have a tax charge imposed on the excess over £1.25M rather than on £1.5M as happens now