Wednesday, 10 February 2010

Tax breaks for offshore pensions

If you’re a Briton living overseas you may have looked into moving your pension offshore to avoid the obligation to buy an annuity, through what is known as the Qualifying Registered Overseas Pension Scheme (QROPS). British broadsheet The Telegraph recently took a close look at the options for expats in terms of pensions, and have published an article on the subject.

The fall in the pound is something that has severely impacted expats who rely on a pension income paid in sterling (Expat Explorer revealed a high proportion of British retirees residing in France so our sympathy goes out to them!).

QROPs may be subject to Isle of Man tax but depending on the country you live in, a taxation agreement between your resident country and the UK may mean that your pension is exempt from UK and Isle of Man tax entirely. The list of countries is steadily growing so the article is probably well worth reading if this is relevant to you.

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