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Government nets £2.6bn from rush to cash in pensions

Budget reveals government set to net three times more tax than first thought from pension freedoms, alongside crackdown on overseas pension schemes.

 

Transfers to Qrops requested on or after 9 March will be subject to a 25% tax charge unless certain conditions apply. This charge will be made before the transfer is made. 

‘There are generally between 10,000 and 20,000 transfers to Qrops each year. It is expected that only a minority of these transfers will be subject to this policy,’ HM Revenue & Customs said.

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1 comment so far. Why not have your say?

Law Man

Mar 11, 2017 at 10:57

Freedom of draw down: this has been of great benefit to us. Regrettably a small minority will act foolishly, although this can be mitigated by (1) vigorous prosecution of criminals who encourage investors to transfer to unsuitable schemes, and (2) making it clear that wastrels will not be entitled to state benefits.

Overseas pensioners: if HMG (rightly) clamps down on artificial tax saving schemes, in return they can offer genuine foreign based state pensioners the same rights as domestic state pensioners. They have paid the same tax and NIC.

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