death of qrops...
What’s Next for UK Expats

The 2024 UK Budget ended QROPS for expats, imposing tax penalties on overseas pension transfers. From 2027, UK pensions face inheritance tax, risking up to 70% in losses. Expats can adopt a Cyprus-based strategy (for over 55's) or an International SIPP (under 55's) to secure retirement funds and reduce taxes.

UK Expat Pension Solutions

The 2024 UK Budget has officially ended QROPS (Qualifying Recognised Overseas Pension Schemes) as a viable option for UK expats. This means transferring your UK pension overseas now comes with hefty tax penalties.

Keeping your pension in the UK comes with significant financial risks, as from 2027, UK pensions will be subject to inheritance tax. This means that between you and your beneficiaries, you could lose up to 70% of your pension pot to the Tax Man.

If you’re living abroad or planning to retire overseas, doing nothing could cost you thousands in unnecessary taxes and fees. Instead, you need a tax-efficient pension solution that protects your wealth.

Pension Solution for UK Expats Over 55

For UK expats aged 55 and over, there is a highly tax-efficient pension strategy available in Cyprus that offers significant benefits:

✅ Reclaim UK Tax on Lump Sums: If you withdraw your pension as a lump sum while a non-UK resident, you will be eligible for a UK tax refund, reducing unnecessary deductions.

✅ Low Retirement Tax in Cyprus: Cyprus offers a special one-time 5% retirement tax, ensuring minimal taxation on your pension withdrawals compared to the UK. You can pay this once then never pay income tax ever again, even if you move back to the UK.

✅ No Inheritance Tax

Unlike UK pensions, reinvesting your pension into a tax-efficient bond or investment platform in Cyprus protects your wealth from UK inheritance tax, ensuring more of your money is passed on to your loved ones, even if you decide to move back to the UK.
By taking action now, you can reduce pension costs, avoid future tax liabilities and maintain full control over your retirement funds.

Pension Solution for UK Expats Under 55

For UK expats under 55, an International SIPP (Self-Invested Personal Pension) is the best alternative to QROPS or a non-independent UK private pension. It allows you to keep your pension within the UK while maintaining greater flexibility and control until you reach the age of 55 when you will be able to take the Cyprus option above.

Unlike traditional UK pensions, an International SIPP allows for a more diversified portfolio with greater investment options through an independent MiFID II regulated Investment Advisor who can help you grow your pension more effectively and securely.

Act Now!

With QROPS no longer an option, UK expats must secure alternative pension solutions before 2027’s inheritance tax changes take effect. Whether you opt for an International SIPP or a Cyprus pension strategy, the right decision today could save you thousands in unnecessary taxes.

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