HMRC steps up offshore pension curbs

Thousands of retirees living abroad face the prospect of high tax charges, following an HMRC crackdown on offshore pension transfers.

The Financial Times reported that HM Revenue & Customs is now investigating whether offshore pension schemes that accepted transfers from the UK meet new requirements. Offshore pension funds must comply with UK rules in order to be moved overseas without the saver attracting a 55% tax charge.

HMRC has decided to remove more than three quarters of schemes from its Qualifying Recognised Overseas Pension Schemes (Qrops) list. The number of schemes has fallen from 3,800 to 663, the FT reported.

Australia saw 1,599 of a total 1,600 schemes delisted, while 741 schemes in Ireland were delisted, leaving just 56. Switzerland was left with one, down from 100, as 30 of 34 French schemes were removed.