“I live in Italy, but have a UK pension…”
The forever moving finish line of Brexit “draws ever nearer”…We think… And as it does, this causes uncertainty not only for the markets but also in the minds of professionals stationed in Italy. Naturally, this raises many financial-related questions…
What are the tax obligations on property?
Will the GBP/EURO volatility continue?
I still have funded UK bank accounts, should I close them?
I have a UK pension/ NI contributions, what options do I have?
Plus many more…
UK Pension Transfers
With regards to UK pensions, we currently enjoy the option of transferring UK contributions to International structures, depending on where you are based. International pensions have to meet certain requirements set by Her Majesty’s Revenue and Customs (HMRC) and are a direct result of EU human rights legislation with regards to freedom of capital movement. These structures offer tax protection, professional investment services, currency flexibility and many more features.
What about Brexit?
The problem however is that the UK is leaving the EEA and it could transpire that they are no longer subject to these rules. So the possibility that these current freedoms are taken away is a very sobering reality.
During last year’s budget, the chancellor enforced a 25% charge on pensions leaving the EEA. Therefore, we will probably see this charge applied to ALL pension transfers post Brexit.
How do we look into this?
I would recommend that anyone in Italy with a UK pension, whether it is Defined Contribution or Defined Benefit (Final Salary) get in touch today via the pension page for a no obligation consultation.
