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 […]

Pensions - thumbnail

Another growing blip on the pensions radar…

There is an awful lot going on in the pensions arena at the moment. Indeed, the radar for the next couple of years is jam-packed with actions that employers need to take or be aware of. And as these legislative blips move ever closer to their target date, so employers need to spend more time understanding the issues involved. One such topic is the subject of pension fund automatic transfers, which is targeted to commence in autumn next year.

Newsletter

News and expert analysis straight to your inbox

Sign up

Leave a comment