Providing information and clarity

for British Expats looking to Transfer their UK Pension Offshore

Do you know that if your Pension is left in the UK you are risking:-


Losing 50% of your pension for your Spouse.

The majority of UK pension schemes have an optional benefit of a “50% spouse income”. This is a benefit that you pay for by reducing your annual pension income. In simple terms you might  pay thousands of pounds each year to lose 50% of your fund you have worked all of your life to build for you and your spouse.

In addition, a significant number of schemes that offer the 50% spouse income benefit will not pay out the full 50% if the spouse is self sufficient.




Losing 100% of your pension for your family in the event of the death of your spouse.

In the event of your spouse’s death the fund dies with
them. Do you really want to lose your children’s inheritance
that you have worked all of your life to build?

Pension Deficits. - Currently many Pension Schemes in the UK are in deficit. This includes some major, well known companies.


They do not have sufficient employer/employee contributions being paid into the scheme in order to be able to pay out to Retirees over the long term. Companies including British Airways Pension Scheme (B.A.) (-£3.7bn), Thomas Cook (-£371m), Ultra Electronics Holdings (-£78m) and Greene King (-£92m) to name but a few.


Many clients choose to move their Pension while there is still a value and not risk leaving the fund to deteriorate.


Source: BBC News Website 2011

Exposure to buying an Annuity.

If you were to purchase an Annuity, the annuity dies with you. For example if an Annuity is purchased and you pass away in year 2, so dies the annuity payment.

Non Domicile Spouse - Gifts made between spouses or civil partners are exempt from inheritance tax.


This exemption is limited to £55,000 if the deceased (or donor) was domiciled in the UK and their spouse or civil partner was not domiciled in the UK at the time of the transfer. i.e if you are married to a non UK Passport Holder.

Restricted Investment & Currency Choice - Many UK Pension Schemes are restricted to investing in British Pounds and UK Investments. For Expats that prefer investing in alternative investment locations and currencies Overseas Pensions may be a better option.

Taxation – A standardised rate of 55% Tax on all Pensions in the event of death. Currently known as a "Tax Recovery Charge" from age 55 onwards when Pension assets are transferred to beneficiaries upon death.

Limited Annual Pension Contributions - As of 2011, the maximum pension contribution limit has been reduced to £50,000 (down from £255,000).

Restricted Life Time Pension Contributions -The lifetime allowance was reduced in April 2012 from £1.8m to £1.5m.


Any amount over your lifetime allowance taken as a lump sum is taxable at 55 per cent. Any amount over your lifetime allowance taken as a pension is taxable at 25 per cent.

Pension Access - As of 6 April 2011 individuals over the age of 55 that meet the Minimum Income Requirement (MIR) of at least £20,000 per annum will be able to draw-down an unlimited amount out of their crystallised pension funds. The amount drawn will be treated as income for tax purposes.


Can we Help? - If you are a British expat or you have lived in the UK and contributed to a UK Pension for over 7 years and want information on how to transfer your pension offshore, we can help you.


You could be transferring your UK pension abroad into a QROPS or QNUPS tomorrow! 


Possibly saving you and your family significant amounts of Pension income that could currently be lost.


Contact our technical team using the form on the right hand side for a free consultation.


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