Podcasts about qrops

In this episode we answer listener questions covering emergency funds for higher and additional rate taxpayers, and inheritance tax considerations around beneficiary SIPPs. We also discuss whether couples should rebalance pension contributions, the key steps to take before retiring abroad, and what to know about DB pension transfers. Finally, we look at cross-border pension taxation using the UK–Denmark double taxation treaty as an example. Shownotes: https://meaningfulmoney.tv/QA40    01:20  Question 1 Hi Pete & Roger, Thanks for all your helpful and easy to understand information. I have only been on my financial wellbeing journey for a year.  I work in the NHS and am in a higher tax bracket. I am fully enrolled in the NHS pension, more out of previous disinterest than any actual action on my part. I am single and currently saving up for a down payment on a house in about 4/5yrs. I maxed out my ISA last year and expect to do the same this year; this includes money for the down payment. I also took out a SIPP which I only recalled last year; I took it out 20+ years ago. However I am still waiting for a statement from the pension office before my accountant can work out how much more I can add to the SIPP.  In the interim I have my emergency fund in a premium bond (20k) but am worried it's being eroded by inflation. I expect to be an additional tax payer in the next few years. Where should I keep my excess cash? More in premium bonds with no tax but erosion by inflation; or open GIA or more in high interest savings account and pay the tax? Or is there another option you would recommend? Btw I have £600 in crypto (Coinbase and Etherium) but don't plan to put more than £400 more in then plan to forget about it. It's a tiny fraction of what I put in my ISA. Thanks, Joy   04:46  Question 2 Dear Pete and Roger. Love the podcast. I think it is essential listening for those wanting to elevate their knowledge of the incredibly important subject of financial planning and it also highlights the value add that financial professionals can provide. My mother is 79 and has a comfortable guaranteed inflation linked income via state and civil service pension, which is supplemented by savings (maxed premium bonds & healthy cash savings) and investments held in ISAs and a beneficiary SIPP from my late father who passed before 75yrs old (therefore the assets are income and CGT free). My mother is keen to minimise the IHT on the estate both her and my father worked so hard to create. Despite her comfortable situation, I still have to encourage her to spend and use your very helpful '40% off sticker' analogy on a regular basis. It is my understanding that SIPPs will be subject to IHT and income tax from 2027. As my sister and I are both additional rate taxpayers, we will potentially be subject to 67% tax on any assets remaining in the SIPP if the estate is above £1m IHT threshold. While the '67% off sticker' analogy is even more helpful to encourage her spending, it has triggered some planning. We are drawing down the beneficiary SIPP to fund ISA each year for my mum – keeping the income and CGT tax benefits for my mum while removing it from the double income and IHT tax on death. As part of the IHT planning we are now considering regular gifts from surplus income. When combined with her guaranteed income, the assets in the beneficiary SIPP are more than sufficient so sustain her lifestyle until her age would be well into three figures. Based on my reading, it appears any drawdown from SIPPs are considered 'income' for gifting purposes, regardless of if they come from capital or income. Therefore she could start to draw more 'income' from the SIPP and gift this surplus which could be considered IHT free. Are there any limits to how much or how quickly she could reasonably drawdown from a SIPP so that it would no longer be considered 'income' by HMRC for IHT purposes? i.e could she empty the SIPP over a 5 yr period, gift that as excess income, then reduce the gifts to reflect a different income and or expenditure? While all the drawdown from SIPPs is considered 'income' for IHT purposes, the treatment of withdrawals from ISAs or other investments are distinguished between whether they are actually capital or income. Therefore, we have the added complication of needing to balance the 'income' drawdown from the beneficiary SIPP to make sure she doesn't eat into 'capital' of the ISAs and savings which would then mean the gifts from regular surplus income would then be considered part of the estate again. Our circumstances mean my mum feels slightly trapped between keeping the SIPP (so it is considered income for gifts from regular income but gets IHT taxed at 67%), continuing to use the beneficiary SIPP to fund ISAs (reduce IHT liability but lose flexibility to gift it as income), maybe change the investment engine of the ISAs from a lower yielding balanced solution to something with a higher natural yield, or do something else altogether (lump sum gifts and hope to survive 3yrs for taper or 7yrs). Any thoughts or suggestion would be appreciated. While there are some relatively niche circumstances, I think it covers two more broadly applicable IHT planning considerations SIPPs v ISAs under the new rules and regular gifts from surplus income. Thanks in advance Stephen   17:06  Question 3 Hi Pete and Roger Thank you both for your continued help in navigating the financial maze and I am enjoying the listener questions. My wife works part time and is a basic rate tax payer. She pays into her workplace pension and contributes an additional 15%. Her pension provider receives 20% tax relief on these contributions. I am a higher rate tax payer and I make contributions to a SIPP. My pension provider receives 20% tax relief and I claim an additional 20% directly from HMRC. As a couple, we could stop making the additional contributions to my wife's pension and instead make them into my SIPP. This would give us an additional 40%, rather than 20%. Mathematically this makes sense. We haven't done this so far, as I like the idea that we are equally contributing to both of our pensions, for the future. It also helps keep things simple. I am mindful that one day, we may kick ourselves for not making this simple switch which may leave us with a significantly bigger pot, when we need it. What options would you consider in this decision of splitting pension contributions. Many thanks, Rob 20:17 Question 4 Dear Pete & Rog, I just wanted to say a heartfelt thank you for your podcast and the incredibly valuable information you share. Your conversations are not only insightful but also reassuring as I start to think more seriously about my own retirement planning! One of the things I'm considering is retiring abroad (somewhere sunny!) Spain most likely, and I wondered if you might explain the process you go through with such clients. Specifically, do you have a checklist, or a list of key questions, that you typically ask clients to work through before moving overseas? For example, I've learned that ISAs are not recognised in many EU countries (so it may be better to sell before leaving), and I imagine there are similar considerations around SIPPs/UK DC pensions and other investments. Do you also tend to liaise with financial planners or accountants based in the EU when helping clients prepare for such a move? I would be very grateful for any wisdom you could share. Thanks again for all the work you put into the podcast, it really does make a difference. Warm regards, Chloe 24:55  Question 5 Hi Pete, Love the podcast.  Very informative and user friendly. I have a question, once popular but maybe not so much now and one that will make advisers sweat again! I'm a sophisticated investor (so to speak!), I manage my own SIPP etc and I'm an accountant so I guess I have a head start over most people.  I have a net worth excluding my house of circa £2.5m spread across a SIPP, ISA, FIC and GIA. I also have an old DB pension.  I'm 59.  It pays out circa £6,500 from the age of 65.  My dad died aged 63.  Given my circumstances I want to transfer the DB scheme into my SIPP.  I have two children so would like them to get it rather than die with me so to speak.  The last transfer value I got was pre covid at circa £100k which I know isn't a brilliant multiple but I'm happy with that.  I'm fit and healthy but I'm not relying on the guaranteed pension given my other pension provisions. So, firstly is it likely the transfer value would have gone up or down given the increase in interest rates and secondly do you think I could get a positive recommendation from an adviser? Thanks, Oscar 31:35  Question 6 Dear Pete and Roger, Love the podcast. I'm a bit more of an adventurous investor than you usually caution, but you provide a certain "passive-tracker-Yin" to my "property-investment-Yang". Given your backlog I'm going to ask you a pension question that I probably don't have to think about for 20 years, so you have time to get to it. I worked in Denmark for several years and paid into a pension scheme while I was there. I believe it is structured similarly to a UK DB pension scheme. There is an initial lump sum plus an income for life.  This pension fund is not covered by QROPS, so there is no transferring my way out of this complexity. The Danish pension fund thinks I'll be paying Danish income tax (presently 37-38%), Chat GPT is adamant that I'll be paying UK Tax. Who's right? If taxed in the UK I can imagine getting the tax free cash allowance right might be complicated. Is there anything else I should be considering? Best Wishes, James

This week the new "scheme pays" option for UK pension scheme transfers to QROPS, Inland Revenue is consulting on banking taxation changes, and an interesting and useful Taxation Decision Review relating to foreign investment funds

#180What are the repercussions of the Autumn 2024 budget for expats, property investors and those that are both! How will it affect your tax residency, your retirement and your estate planning. And what impact will the budget have on your investment strategy, your pension or your domicile status?Jake Barber of SJB Global is an expat tax specialist who helps expats with their Retirement, Investment & Tax Planning.Jake takes us through the budget and its impact on Expat Property Investors.During the episode, we discuss:Impact of autumn 2024 budget on expat residency, retirement, and estate planning.Impact on individuals due to frozen tax brackets and increased taxes.Current UK tax brackets and their implications.Spending strategies in retirement changing due to estate tax structures.Renters and those without assets facing disadvantages.Increased property taxes potentially leading to higher rents.Stamp Duty Land Tax changes and examples given.UK domicile status now based on residency rather than origin.Changing country/state impacts domicile status.Effects on inheritance tax liabilities.Non-domiciled residents' tax obligations and exemptions.QROPSInheritance tax changes reducing drastic decisions.Double taxation risk on pensions without specific schemes.Business and agricultural property relief changes impact.Capital gains tax rate changes and their effects on income groups.Tax residency and investment strategy affected.Advice on keeping assets in tax-neutral jurisdictions for expats unsure of permanent residence.Encouragement of moving assets outside the UK for tax exemptions after 10 years abroad.UK inheritance tax nil-rate band of £325,000.Taxation on assets above the nil-rate band. We help time poor professionals get a good return on their money by investing with us. Schedule a callLeave an honest review of Expat Property StoryJoin our Mailing List to join our WhatsApp  group AND access our 37 Question Due Diligence Checklist AND our 23 Step Guide to Buying Property at Auction AND our Monthly NewsletterFollow the Show on InstagramTell us the one thing you're struggling with in UK propertyDetails of where to meet other Expat Property Investors (For FREE!!!):Hong Kong: Pacific Coffee, 2/F, Central Building, Central (first Saturday of each month from 11:30 am)Dubai: Holiday Inn, Science Park (first Wednesday of each month from 7pm)Singapore: The Providore at VivoCity (first Saturday of each month  from 10:30 am)Keywords:UK Property, UK Tax Brackets, Inheritance Tax, Capital Gains, Stamp Duty, Expat Property Investment, Domicile Status, Retirement Planning, Global Assets Tax Strategies, QROPS

Brett Hanson of Blevins Franks International Tax and Wealth Management talks to Howard Brereton #Wealth #Tax #WealthManagement #Spain #Expat #Brexit

Bill Blevins of Blevins Franks International Tax and Wealth Management talks to Howard Brereton #Wealth #Tax #WealthManagement #Spain #Expat #Brexit

Bill Blevins of Blevins Franks International Tax and Wealth Management talks to Howard Brereton #Wealth #Tax #WealthManagement #Spain #Expat #Brexit

Welcome to Finance and Fury, the Say What Wednesday Edition Today we have a question from Luke. Hi Louis, I listen to you often. Very informative and interesting episodes. My question is regarding super/pensions. I lived and worked in the U.K. for about 10 years - and still have a pension there. I also have Super here in Australia. I heard I could bring my U.K. pension back to Australia, then I heard they stopped it, and then I heard I still could. I was hoping you could clarify this for me. Great question! This was a big change to expats retirement planning a couple of years ago that seemed to go pretty unnoticed, so thanks for bringing the topic up. Created issues The issue with the UK Pension transfers to Australia occurred with changes to UK legislation back in 2015. This was due to the UK pensions prohibiting people from transferring their pension funds before they have reached the minimum UK pension age of 55, due to changes in accessibility laws between the two countries (i.e. the UK didn’t want people transferring their Pension accounts to Australia and being able to access the funds at an earlier date).  Anyone who has worked in the UK will normally have built up some form of UK pension benefits. It is now compulsory by law for all employers in the UK to enroll their employees into a workplace pension scheme. This means when people leave the UK, they will need to decide what to do with the pension fund they have built up. You can transfer your UK pension to an Australian Superannuation as long as the Superannuation has QROPS status.  A qualifying recognised overseas pension scheme or QROPS for short, is an overseas pension scheme that the UK recognises as eligible to receive transfers from registered pension schemes in the UK. To qualify as a QROPS the scheme must meet the requirements set by UK tax law. To check if a pension is a QROPS you can check the list of schemes that have told HM Revenue and Customs (HMRC) that they meet the conditions to be a recognised overseas pension scheme (ROPS). From 2015 only people who are over 55 and either have an SMSF, or have a complying APRA super fund (i.e. regular super funds like an industry or for profit fund) are eligible. Anyone who meets these requirements is eligible to transfers their UK pension funds through following the non-concessional contribution rules.   These are separate rules to UK pension transfers - These are as follows: The transfer amount has to be within the non-concessional contribution cap of $100,000 per annum.  A bring forward rule applies to members under age 65, allowing an amount of $300,000 in one lump sum through using the contribution limit over a three-year period. However, for anyone aged over 65 but under 75, they need to meet a work test too contribute funds to super, along with being limited to $100,000 p.a. as the bring forward rule is no longer available after 65. Upon turning 75, no further contributions can be made. A lifetime contribution limit of $1.6 million will also apply. If your total super balance is over $1.6 million, you won’t be able to make any further non-concessional contributions. Introduced with a different round of super reforms Part of balance transfer caps - $1.6m in Pension environment – cap amount in super Was going to be a lifetime cap of $500k retrospectively. The Non-Concessional If the transfer is made within 6 months of moving to Australia, then the whole transfer is treated as a non-concessional contribution and therefore subject to the NCC limits and rules. If the transfer is made after 6 months of moving to Australia, then the rules are slightly different. The value of your UK pension on the date you arrived in Australia is treated as a non-concessional contribution. The growth in the value of your fund between the date you arrived in Australia and the date your transfer is treated as fund earnings and therefore subject to tax in Australia. This part of the transfer is neither treated as a concessional contribution or NCC. There is only one retail superannuation with QROPS status, the Australian Expatriate Superannuation Fund, the rest are all self-managed superannuation funds (SMSF). Once you transfer your pension to a QROPS in Australia then it becomes subject to normal Superannuation rules, as well as being subject to UK rules for 10 years after the transfer. Few practical examples of how this works and explain the process of transfer further You are 45 – No go You are 55 and super of $1.7m – no go You are 60, super of $900k and UK pension work $280k – Okay to transfer (if super fund complies) You are 67, not working – No go, cant transfer into super here Side note – lots of other pension funds (like RSA) can be transferred into super in Aus, but they do have their own laws and tax treatments with withdrawn early – just make you aware   Thanks for listening, if you want to get in contact you can do so here. 

There has been plenty of discussions as well as some confusion in the XY community around QROPS. What is it (really) and how do we help our UK expat clients in this space compliantly? So to go beyond just the nuts and bolts of it all, we went straight to the source and invited Adam Turk (@adamdturk) – UK Expat and CEO of Harbourside Capital (www.harboursidecapital.com.au/) into the studio to give us the lowdown. Aside from getting the ‘everything you need to know about QROPS’ spiel, this episode also explores (and debates) Best Interest Duty, holistic advice against vertical integration, important changes coming for anyone using an MDA and Adam’s take on passive investing.  Let the debate begin…. XY Adviser Online Training Platform  - https://www.xyadviser.com General Disclaimer - https://www.xyadviser.com/disclaimer/   This podcast has been brought to you by Zurich Life & Investments (www.zurich.com.au), one of the last true independent life insurers in Australia. Zurich has always believed in the value of advice and the professionals who provide it. They continue to invest in programs such as this one that are designed to strengthen the health and reputation of the advice profession. We are proud to partner with Zurich to help shape the future direction of advice and make it more accessible to more Australians.

Key Points There are no statutory restrictions on membership of a UK pension scheme by persons who do not live or work in the United Kingdom. Restrictions on benefits accrued or provided under a registered pension scheme may be relaxed where a member does not benefit from UK tax relief because he or she is a "relevant overseas individual" or a transfer has been made into the scheme from a "recognised overseas pension scheme". A registered pension scheme may only make a transfer into an overseas pension scheme that is approved for the purpose by HMRC (a "qualifying recognised overseas pension scheme" - QROPS). Transfers to a QROPS (and onwards from a QROPS to another QROPS) are subject to the Overseas Transfer Charge (OTC) of 25% of the transferred value from 9 March 2017, unless certain exemptions apply. A member who comes to the UK as an existing member of a qualifying overseas pension scheme may benefit from migrant member relief on UK income tax. A scheme may only accept contributions from a "European Employer" if it is authorised to act as a cross-border pension scheme. Onerous funding requirements apply to cross-border defined benefit schemes. Despite the first bullet point above, it is worth noting that having a scheme member who is subject to the labour and social security laws of another EEA state (i.e. who works elsewhere in the EU in a scheme) makes that a cross-border scheme with onerous funding consequences. The European parliament and Council has agreed a revised IORP Directive (IORP II) which will make changes to cross-border pension arrangements (subject to how the Directive is applied in the UK as a result of the UK leaving the EU). Changes to the taxation of "Foreign Pensions" from 6 April 2017 are substantial.

The PMI's Tim Middleton joins Jack Jones to dissect the Budget. This episode looks at QROPS, MPAAs, tax relief and National Insurance changes.