QROPS Pension Transfer
Tax-free transfer of your UK pension to a German QROPS
As a specialized and professional broker, we offer you a nationwide service for the transfer and processing of pension plans from the UK and other countries. With our service, we support our customers every day in the successful realization of their transmission requirements.
Important and renewed legislative change to the Lifetime Allowance (LTA) Charge as of 06.04.2024:
On April 6, 2023, the so-called Lifetime Allowance Charge (LTA) will no longer apply.
As a result of this change in legislation, individuals with UK pension assets above the LTA of £1,073,100 will inevitably have the added benefit of not having to pay a 25% LTA charge in conjunction with a QROPS Pension Transfer.
This amendment to the law will now take effect on
06.04.2024
by declaring a so-called “Overseas Transfer Allowance”.
As a result of this change, 25% transfer tax will again be levied on amounts exceeding the LTA threshold of £1,073,100. A “new regulation” will therefore be introduced, which, however, corresponds to the tax base prior to 06.04.2023.
Globalization and mobility in the world of work
Globalization and mobility are playing an increasingly important role in today’s working world. As a result, many professionals work for a foreign employer during the course of their working life. If people have worked for an employer in the UK, they have very often built up pension assets that promise them a pension benefit at retirement age.
In this context, however, pension beneficiaries are regularly faced with the question of what impact political and economic risks may have on existing pension assets in the medium to long term.
Risks + challenges for people with UK pension plans
The negotiated free trade agreement between the UK and the EU averted a hard Brexit at the time. However, it is impossible to predict what consequences the exit from the EU, the aftermath of the COVID-19 pandemic, the prevailing war situations and the inflationary uncertainties
- on the British economy,
- existing tax treaties and
- the exchange rate (GBP/EUR).
However, it is clear that these risk factors will always have a direct or indirect impact on UK pension plans.
In addition, there are with 06.04.2024 (see above information text on the amendment to the law) a further Risk for persons with a transfer value of over £1,073,100. If this threshold is exceeded, a separate tax charge (Overseas Transfer Allowance Charge) must be levied for a UK pension transfer. in the amount of 25 %.
By transferring the pension assets before the Overseas Transfer Allowance (£1,073,100) is exceeded, this taxation can be completely avoided.
Our service
Possible solution QROPS
In order to avoid or minimize the risks outlined above, people living in Germany currently still have the option of transferring their accrued UK pension tax-free to a qualified overseas pension provider (QROPS).
This makes it possible to pay out a pension in euros and to check taxation under German law.
Whether, when or how quickly this tax advantage will change in the future cannot be answered at present.
Langer Financial Services will be happy to help you transfer your UK pension to Germany. We will advise you without obligation and offer individual solutions according to your ideas and wishes.
References
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More InformationContact us
You are very welcome to send us your questions or requests via our contact form.
Please note:
- Pension assets with a value of less than €25,000 (according to the current exchange rate) cannot be transferred.
- Unfortunately, we cannot offer any help with State Pensions or the transfer of NHS pension rights.
We will usually get back to you within 24 hours if your request is received on a working day. We look forward to hearing from you!
