Pension Transfer for Expats
by admin on 24/02/09 at 6:56 am
If you are from the UK but employed elsewhere in a different country, then you will probably consider some kind of pension transfer. Most of the expats get quite frustrated, due to the fact that their funds are tied up by their country, with all the regulations and terms defined by the governments. Frozen pension transfer is though a reality if you are a British citizen, provided that you abide by certain rules. In any case though, your frustration will not end that easily, because the pension transfer is subjected to heavy and burdensome taxation by the HMRC. The good thing though, is that transfer usually occurs in pounds, which is a rather favourable currency, in whatever country you are.
The best option, or pension advice, is to have your old age pensions in the UK transferred through the Qualified Recognised Overseas Pension Scheme, which allows you to collect your money and transfer it to a local plan, without paying these heavy taxes, choosing at the same time the currency of the transfer. One of the limitations is that you must be residing in the foreign country for at least five years and that the scheme you have chosen is legally approved by the government of the country of your residence.
