What You Need To Know About QROPS Brexit
The shock has begun to pass, the dust is settling and UK citizens around the world are now beginning to consider the implications of this decision on their financial future.
Within 48 hours of the announcement the pound had dropped to its lowest levels since the mid 1980’s and since then the pound has continued to weaken against major currencies.
With BREXIT and the UK deciding to leave the EU, expats and advisers are now considering how this will affect assets, tax efficiencies and the future of their retirement options.
QROPS BREXIT: What Changes Will Be Made To The Legislation?
It is likely that Britain’s exit from the EU will take two years to complete and it could be even longer than that before there is clarity around whether current options will still be in place for UK expats.
Economists and advisers have suggested that possible changes could include reduced mobility of investments, allowing only transfers to countries in which expats are resident or the implementation of a transfer tax.
Qualifying Recognised Overseas Pension Schemes were introduced as a result of EU legislation that forced the United Kingdom to formalise and allow the transfer of assets from the UK to foreign jurisdictions.
With the growth of overseas retirement options over the last 10 years, the benefits for expats choosing to transfer have been significant including reduced IHT and flexibility.
Any changes to the legislation as a result of Brexit are therefore likely to have lasting implications for UK citizens living outside the UK.
QROPS BREXIT: What Decisions Should UK Expats Be Making?
The vote should encourage expats to make sure that their financial planning is sound.
Current legislation makes it favourable for transfers in many cases and there is no guarantee that this will hold true in the future.
With all the uncertainty around legislation changes and currency instability as a result of the Brexit vote, it’s an important time for expats to consider their options, investigate QROPS and make sure that they are well equipped for the next couple of years which look set to be a turbulent time for the British economy.