View more on these topics

Rowanmoor warning over Irish pension transfer deals

Rowanmoor Pensions is warning advisers they could face regulatory action if they recommend the transfer of pension schemes to Ireland as a way of avoiding tax.

The small self-adminis-tered scheme provider’s warning follows news that pension scheme trustees are being contacted by firms offering them the chance to avoid tax if they transfer their scheme to Ireland.

In Ireland, pension funds can be transferred to an app-roved retirement fund and there is no requirement to purchase an annuity.

On death, the fund can be left to beneficiaries, although it would be subject to Irish inheritance tax at a rate of20 per cent.

Rowanmoor director of consultancy David Seaton says: “It is our understanding that some practitioners are offering to establish trading companies, employment contracts and even accommodation to UK companies in an attempt to break the UK pension scheme rules.

“IFAs who get involved in such practices are likely to become the subject of enquiries by The Pensions Regulator, HM Revenue a& Customs and the FSA .

“I was told that requirements for a transfer to Ireland are that an Irish selfdirected trust, like the UK Ssas, can only be established by a genuine Irish registered company trading and there must be a proper employer-employee relationship.

“The Irish scheme must obtain the status of a qualifying recognised overseas pension scheme from the UK HMRC, as, without Qrops status, the transfer from the UK scheme will be an unauthorised payment, which could result in a combined tax charge of 104 per cent.”

Recommended

MPs probe orphan assets

The Treasury select committee is to look at the extent to which life offices can use inherited estates to subsidise corporate activity.

‘End the stigma of sales’

The stigma attached to the word “sales” may force consumers down an advice route that might be inappropriate, warns Bankhall chief executive Peter Mann.Speaking at a Money Marketing RDR round table, he said the tiered approach proposed in the retail distribution review implies that the sales route is inferior.Mann said: “There is a kind of […]

Pension limit may be halved

The Chancellor may reduce the maximum pension contribution eligible for tax relief from £225,000 to £100,000, according to Budget predictions from chartered accountants MacIntyre Hudson.The firm says Alistair Darling may see the current level as having the potential for higher-earners to abuse the system and could cut back the annual limit on tax relief.Tax principal […]

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