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QROPS Uptake is in Decline but Suitability is Still the Key Question

New data from HM Revenue & Customs reveals that the combined value of retirement transfers to QROPS fell to £740 million in the 2017-2018 tax year, the first period since the government introduced a 25% tax charge, with the number of pension transfers down to 4,700 from 9,700.

Given the scale of the pension transfer tax, the drop recorded by HMRC in QROPS transfers should come as no surprise. However, as the figures do not differentiate between transfers made by UK citizens and expat retirement transfers, it is difficult to know what, if any, difference the new levy has had on the decisions of expats.

Expats, Do You Have a Regular Savings Plan?

Many expats earn more abroad than they would at home, have lower tax liability and a range of investment options. However, despite these advantages, some fail to adequately account for one essential aspect of wealth management: expat regular savings.

Unfortunately, for those in this situation it can take a catastrophic event such as the loss of a job, ill-health, an accident or an unexpected liability or capital expense to make them realise there is an expat regular savings shaped void in their financial planning.

Pensions Regulator Announces Enhanced Transfer Information Sharing

For many retirement savers finding the best way to realise pension plan benefits will be the key to unlocking a financially secure retirement.

Pension transfers, whether from a defined benefit plan into a QROPS, SIPPs or other vehicle, are likely to be an important consideration as part of this process. However, in recent years it has become clear that although pension transfers can be advantageous for many individuals, particularly those who live abroad in the European Union, a minority of advisers are failing to properly examine the question of suitability, thereby resulting in some investors being saddled with an unsuitable product.

Defined Benefit Plan Deficit Raises Questions

A pension transfer is not for everyone and there will be many factors to weigh up before making the decision to transfer from an existing scheme into a QROPS, SIPPs or other structure.

However, a great deal of doubt remains about the long-term viability of the nation's defined benefit plans, with the high-profile collapse of a number of such schemes leading many to question their reliability and suitability.

And these doubts have only been increased by the recent revelation from Mercer that during 2017/18 the accounting deficit for the defined benefit plans of the UK's top 350 FTSE organisations increased by 28% to £41 billion, mainly because of a £19 billion drop in asset values (from £766 billion to £747 billion).

Set sail with a yacht loan: All there is to know about boat finance

Nothing says High Net Worth Individual quite as succinctly – or indeed as spectacularly – as owning a superyacht. However, for those who are not quite yet up to owning their own version of the world-record breaking £2.8 billion History Supreme, there are plenty of more modest yet still luxurious options.

The difficulty with securing such a vessel though is that even if you have the money, finding the right way to structure both the yacht loan and the ownership arrangements can be difficult. This is made even more complex, due to cross-border wealth management concerns so often inherent in obtaining yacht financing.

UK Property – Still a Good Investment?

Back in 2018, for the first time in a decade, rents across the UK fell, which was good news for many. However, it prompted landlords to consider whether the notion of 'easy money' was coming to an end. So, what is a good investment property?

CSG Changes for Expats in France

The wealth management plans of many expats in France have received a welcome boost with an announcement by the French government that there will be a reduction in the rate of social charges on investment income, meaning that low income expats will now be subject to a 7.5% charge compared to the previous 17.2% rate. However, the basic rates will remain as they were in 2018.

The news, which was announced as part of the social security budget for 2019, is of particular interest to expats in retirement as well as those who draw investment income. It also benefits those who do not live in France but receive income from investments in the country.

Brexit? What should I do about Tax and Residencia?

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. 

You will have, no doubt, heard lots of horror stories about what Brexit means either way for UK expats and I do not intend to go into that here. Having said that, please read on, as I explain some fundamental issues that may need your attention sooner, rather than later.

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