Important changes to UK Pensions may impact your migration plans

On 6th April 2010 the age at which you are able to access retirement benefits from your occupational and personal pension schemes will change from age 50 (currently) to age 55.
The change will affect everyone who is due to reach the age of 50 prior to 6th April 2010 and those who are currently aged 50 but will not reach age 55 prior to 6th April 2010.
What Does This Mean For You?
If you fit this profile, you would not be able to access the pension commencement lump sum from your pension(s) until you reach age 55. If you had planned to review your pensions and access benefits prior to the age of 55, from 6th April 2010 you will not be able to do so. This may have a major impact on your upcoming migration, particularly if you were counting on using your pension commencement lump sum to finance your migration.
What Should You Do Now?
Whether you wish to access the benefits from your pension(s) in the near future or not, we recommend that you speak with a suitably qualified financial adviser to advise on your options in good time prior to 6th April 2010. It is also imperative that any advice takes into account your future migration.
How Else Can Montfort International Help You?
Australia and New Zealand have different tax systems to the UK. As a result any UK assets, investments, savings or pensions that a migrant may have could potentially be taxed “Down-under”. In addition to offering financial advice regarding pensions, Montfort International is able to offer assistance with helping obtain a visa for either Australia or New Zealand residency through our network of Registered Visa Agents.
For further information on how you can benefit from Montfort International’s years of experience of pension and QROPS advice, financial and tax advice and/or visa assistance, contact Nick Bond or Paul Lawson-Tyers on 01483 202072. Alternatively please visit our website www.miplc.co.uk.

Retiring Abroad?

Migration can provide new possibilities to those who wish to access their pensions before retirement, say migration finance experts Montfort International plc (http://www.miplc.co.uk/). It is possible to transfer your pensions to an overseas arrangement that has registered as a Qualifying Recognised Overseas Pension Scheme (QROPS) with HM Revenue & Customs.
Broadly speaking, the rules of the QROPS must be the same as a UK pension fund when paying out benefits. The QROPS will have undertaken to report back to HMRC on certain events for the first five years of a member’s non UK residency. After this time the requirement to report back to HMRC falls away and pensions in certain jurisdictions will permit access to 100% of the fund before age 55. This may sound attractive but care needs to be taken that the overseas fund does not breach QROPS legislation as you could face punitive UK tax charges. Similarly, you will also need to check the tax position of any overseas fund in your retirement jurisdiction to ensure you don’t come unstuck there.
Each person’s circumstances are different and while transferring your funds to another jurisdiction may not be suitable for many, it could provide good opportunities for others.
Previously an individual had to be residing in the country to which they wished to transfer this pension fund. As this is no longer necessary, migrants can now transfer their pension to the jurisdiction which offers the most advantageous tax treatment and flexibility for their funds. This is why it is important that you seek specialist advice from someone who is able to advise on both UK and QROPS requirements and your overseas tax position. A foreign adviser who is used to giving advice on domestic issues will not be able to give advice on the full range of possibilities open to UK migrants.
Whatever your financial intentions, seeking advice early from the qualified advisers at Montfort International (info@miplc.co.uk, call 01483 202072 or freephone 0800 018 3571) before you finalise your migration plans can help you to a more comfortable retirement overseas.

Financial pitfalls can entrap migrants

There can be significant tax and financial issues for those leaving UK, but the weak pound is already making things tougher for those going to Australia, so they really can’t afford to pay unnecessary tax. However, only a handful of financial advisers, such as market leader Montfort international plc know the key to tax-effective restructuring.
Many migrants and returning nationals are vulnerable and disorientated. Together with all the excitement there is also apprehension about life in that strange new country. Who doesn’t have concerns? Are you aware that the date you leave will alter your tax position and that the type of visa and its date of issue will affect your tax, as well as have a follow on effect on your purse?
Migrants need advice and it’s not just pensions, for which a Qualifying Recognised Overseas Pension Scheme (QROPS) is a great way to
• access the benefits tax-free as a lump sum
• receive the funds before retirement
• protect your benefits from UK inheritance tax
• avoid the requirement to purchase an annuity
How do you avoid tax on the cash from house proceeds? What do you do about your wills and UK mortgages? Raising a mortgage to release capital won’t necessarily be tax effective unless you consider a change of ownership, and the list goes on. Who would think a repayment on a mortgage can create tax consequences?
In the Inland Revenue’s adverts, Professor Simon Scharma claims “Tax doesn’t have to be taxing.” To ensure this is so for you requires sound, pre-departure preparation - not post arrival damage limitation. Contact the experts at Montfort now to arrange a free initial consultation by calling free on 0800 018 3571 or visiting www.mipolc.co.uk