View more on these topics

Govt to close specialist pension schemes for overseas workers

Philip Hammond 620px

The Government has announced it will close specialist pension schemes to new savings for people working overseas in today’s Autumn Statement.

So-called Section 615 schemes will close to new savig for those employed abroad from 6 April 2017.

The tax treatment of foreign pensions will be more closely aligned with the UK’s domestic pension tax regime by bringing foreign pensions and lump sums fully into tax for UK residents, to the same extent as domestic ones.

The tax treatment of funds transferred between registered pension schemes will also be aligned and the criteria for foreign schemes to qualify as overseas pension schemes for tax reasons will be updated.

Combined with other new measure targeted at offshore tax loopholes and reporting, the government intends to generate an extra £70m a year by the end of the parliament.

The other new measures include stopping UK investors in overseas schemes from deducting performance fees for tax purposes and new penalties for people who fail to correct past offshore tax errors with HM Revenue and Customs.

In other savings announcements, the Government reaffirmed its previous commitment to increase the tax-free ISA savings limit from £15,240 to £20,000 in April 2017.

Consultancy Capital Economics predicted ahead of this year’s Autumn Statement that raising the ISA limit could cost the government £100m.

Recommended

DWP-Department-for-work-and-pensions-500x320.jpg
1

DWP to consult on overseas pension blockage

The Government plans to act to help thousands of expatriates who are struggling to access their final salary pensions eight months after the launch of the pension freedoms. Money Marketing understands the Department for Work and Pensions is to launch a consultation to address concerns that people living abroad with UK pensions are having difficulty in […]

Globe-Global-World-Map-700x450.jpg
4

Aegon warns 80% of overseas pension transfers are scams

Eight out of 10 requests for overseas pension transfers are scams designed to raid savers’ pots, Aegon warns. The provider’s analysis of 50 requests to transfer pensions to overseas schemes in the first quarter of this year found 80 per cent were actually fraudulent. Aegon says fraudsters have been targeting small pots of around £30,000 […]

1

HMRC culls thousands of schemes from overseas pensions list

HMRC has removed thousands of schemes from its list of recognised overseas pension schemes as new rules on early access to savings bite. The Rops list, published today after it was suspended in June, shows the total number of schemes listed has dropped from 3,811 to 663. Australia fared particularly badly, the previous iteration of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com