In fact, the need to do this may well be greater than ever before. There is a reasonable probability that significant changes will soon be afoot; by evaluating your options now you may still be able to take advantage of the flexible pension arrangements that are currently available to UK expats in France.
Of course, there is always the option to leave your UK pension in place and to perhaps convert it into some form of income – perhaps as an annuity – but such arrangements may not always offer the flexibility or tax advantages of taking out a SIPP or QROPS in France, so you need to be clear about the pros and cons of this course of action before making any decision.
For all the misguided and sensationalist talk of British pensions becoming “illegal” in the event of a no-deal Brexit, the truth is that the UK has long had cordial relations with all of the countries in the EU, particularly France, Spain and Portugal, with the latter the UK’s oldest and most trusted ally. It is highly unlikely, to the point of improbability, that agreements will not be reached with any EU country.
Furthermore, any person in France with a QROPS can have every confidence that the pension transfer will continue to offer flexibility, as well as tax and inheritance planning benefit – these will be likely to continue operating in exactly the same way they do now whatever the outcome of the protracted Brexit negotiations. However, be aware that as there are no QROPS schemes existing in France, you will need to select a fund from a qualifying scheme from the European Economic Area.
This is not to say that a QROPS in France or indeed a SIPP are the only pension options available to expats – it may just be that they are the most obviously workable. For more information it is definitely worth speaking with your adviser.
Pensions advice for expats in France
British expats in France have many options regarding how they choose to structure their pensions.
Here at Blacktower we work to help our clients with all aspects of their wealth management, inheritance tax planning, pensions and more. Call us today for more information and tailored advice.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.
Located at the Southern tip of the Iberian Peninsula, the British overseas territory of Gibraltar looks South over the confluence of the Mediterranean Sea and the Atlantic Ocean. This small but strategically important isthmus of land, is home to over 32,000 people in just 6.7 km2 (2.6 miles2) of land. As a British crown dependency, the laws and language are those of the United Kingdom, but Spanish is also widely spoken along with the hybridised form of the two known as Llanito. Due to its location and close links with the UK, Gibraltar has long been a favoured destination by British expats looking for sunnier climes and an attractive tax regime. Although it’s not quite as well-known as some other offshore territories such as Monaco and the Cayman Islands, Gibraltar tax rates make it a very attractive choice for anyone looking to relocate within easy striking distance of the UK and Western Europe.
By now you are probably really fed up hearing about Brexit! Yet, it’s important that you are prepared financially; not just for a Deal or NO Deal Brexit, but also by being ready to meet the Spanish requirements for living in the country.