For expats who are not resident in the Canary Islands and intend on drawing down income benefits in the coming months, and wish to avoid being subject to emergency tax, we recommend you contact HMRC in advance, in order to obtain a personal tax code and thereby automatically claim any personal allowances due. Please note that this process can take some time.
Malta:
At the moment, if your Pension Fund is held under the jurisdiction of Malta there is no flexibility available with regards to accessing your Pension Funds early (at the age of 55 years), however, new primary legislation has already been passed to mirror the aforementioned developments in the UK. Following discussions with the Malta Financial Services Authority, further updates and guidance are expected later this year. It is expected that most Maltese Schemes will be offering flexibility no later than 1st January 2016.
Gibraltar:
If your Pension Fund is held under the jurisdiction of Gibraltar, flexible access is currently under discussion with HMRC. At this stage the 70 / 30 rule still applies, with drawdown subject to capped income of 150% of GAD rates.
Isle of Man:
Currently, the Isle of Man is looking to add flexi-access to its legislation. This will be debated in the Manx Parliament this Autumn. In the meantime the 70 / 30 rule still applies, with drawdown subject to 150% of GAD rates.
Flexi-drawdown plans set to impact delisted QROPS in Guernsey
If, on the other hand, your Pension Funds come under the jurisdiction of Guernsey, your ability to access flexi-drawndown may be affected by new legislation, especially if your scheme has been delisted QROPS. If you are unsure about this, please contact us NOW so that we can review your circumstances and advise how this will affect you.
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.
Under new plans proposed by the Government, and included in Chancellor of the Exchequer Philip Hammond’s first Autumn Statement, British expatriates with offshore pensions will face a higher income tax rate.
As we crest the wave into February, it would be safe to assume that some of January’s good intentions may have been washed away in the relentless flow of days and weeks that seem to pass ever more quickly. It can be tempting, if we haven’t made any significant progress with our goals, to just let them go for another year under the belief that frankly, life can be hard enough already.