IVCM
  • Login Area
  • enquiries@ivcm.com
  • CALL US NOW

    Let the experts help you

    Australia

    Australia

    UAE

    UAE

    Gibraltar

    Gibraltar

    UK

    United_Kingdom
Search
  • Home
  • Products & Jurisdictions
    • Australia
      • Australian Expatriate Superannuation Fund
    • Gibraltar
      • IVCM Gibraltar QROPS
      • IVCM Gibraltar QNUPS
    • New Zealand
      • IVCM (NZ) PIE Superannuation Fund (QROPS)
      • IVCM NZ PIE Superannuation Fund (QNUPS)
  • Client Support
    • Fund Value and Exchange Rate
    • Knowledge Hub
    • Product Documents
    • Login Area
    • Client Feedback
  • Adviser Support
    • New to IVCM
    • Fund Value and Exchange rate
    • Jurisdiction Comparison
    • DTA Analysis
    • Where is Your Client Resident?
    • Product Documents
    • Adviser Feedback
  • Contact IVCM
  • Book a Meeting
  • Home
  • Products & Jurisdictions
    • Australia
      • Australian Expatriate Superannuation Fund
    • Gibraltar
      • IVCM Gibraltar QROPS
      • IVCM Gibraltar QNUPS
    • New Zealand
      • IVCM (NZ) PIE Superannuation Fund (QROPS)
      • IVCM NZ PIE Superannuation Fund (QNUPS)
  • Client Support
    • Fund Value and Exchange Rate
    • Knowledge Hub
    • Product Documents
    • Login Area
    • Client Feedback
  • Adviser Support
    • New to IVCM
    • Fund Value and Exchange rate
    • Jurisdiction Comparison
    • DTA Analysis
    • Where is Your Client Resident?
    • Product Documents
    • Adviser Feedback
  • Contact IVCM
  • Book a Meeting
What is Overseas Transfer Charge OTC
admin2020-06-15T15:38:45+04:00

What is the Overseas Transfer Charge (OTC)?

  • Home
  • Blog
  • Australia, New Zealand
  • What is the Overseas Transfer Charge (OTC)?

Overseas Transfer Charge (OTC)?


We receive many enquiries from individuals looking to transfer their UK pension overseas, who want to know what the Overseas Transfer Charge is and if they would be subject to it when transferring their UK Pension.

In this article, we will cover the Overseas Transfer Charge and highlight the main criteria you must meet if you are to avoid this charge when transferring your UK Pension overseas.

In the 2017 UK Budget, the Chancellor of Exchequer announced that any UK pension plans transferring to a Qualifying Recognised Overseas Pension Scheme (QROPS), made after 9 March 2017, would be subject to an Overseas Transfer Charge (OTC) of 25% if the transfer did not meet certain conditions.

Exemptions

You must meet one of the following conditions in order to be exempt from the charge :

  • You must be a resident in the same country in which the QROPS you are transferring to was established.
  • The QROPS was set up by an international organisation for the purpose of providing benefits for, or in respect of, past service as an employee of the organisation and you are an employee of that international organisation. It does NOT simply mean a multi-national employer.
  • The QROPS is an overseas public service pension scheme and you are an employee of an employer that participates in the scheme.
  • The QROPS is an occupational pension scheme and you are an employee of a sponsoring employee under the scheme.

CALL US TODAY

Let the Experts Help You

"*" indicates required fields

This field is for validation purposes and should be left unchanged.

Can this charge be claimed back?

In certain circumstances, yes!

For example:

  • If you become a tax resident in the same country that the QROPS has been established, within 5 years from the date of the transfer, then a claim to HMRC can be made.
  • If you become an employee of an organisation sponsoring an occupational pension which qualifies as a QROPS.

Why was the Overseas Transfer Charge introduced?

Simply to deter individuals from transferring their pension out of the UK to a jurisdiction with a more favourable tax regime or in other words, to stop tax avoidance. Some jurisdictions offer much more tax advantageous rules and so by introducing this tax charge, it ensured that the government was able to recoup some lost tax revenue.

Careful consideration should always be taken when transferring a pension plan overseas and we would always recommend that you seek professional financial advice before doing so.

If you have any further questions regarding the Overseas Transfer Charge or any other pension-related matters, contact us today and a member of our team would be happy to help.

Facebook Twitter LinkedIn WhatsApp

This article does not contain personal or financial advice. It is provided for general information only and does not take into account your personal objectives, financial situation or needs.  IVCM is not authorized to provide you with any personal or financial advice.

If you require financial any advice then you must make sure that you obtain advice from a suitably qualified financial adviser.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.


Related Posts

UK Pension option September 11, 2022

UK Pension Retirement Options – For Australian Residents

Read More
transfer defined benefit August 10, 2021

Transferring a Defined Benefit Pension to Australia

Read More
transfer uk pensions to australia September 19, 2019

Can I transfer my UK pension to Australia?

Read More
IVCM Contributing to Superannuation September 19, 2019

Contributing to your Retail Superannuation Fund

Read More
Transfer Pension to Australia September 19, 2019

Transfer my UK Pension to Australia – Your Guide

Read More
A Guide to Retail Superannuation Funds January 21, 2020

Your Guide to Retail Superannuation Funds

Read More
Stages of Tax with Retail Superannuation Funds January 21, 2020

The 3 Stages of Tax with Retail Superannuation Funds

Read More
Superannuation Guarantee January 21, 2020

What is the Superannuation Guarantee (SG)?

Read More
IVCM AESF Tidswell Master Superannuation Plan September 19, 2019

AESF and the Tidswell Master Superannuation Plan

Read More
3 Reasons why delaying transferring your UK Pension to Australia can cost you money November 18, 2020

3 Reasons why delaying transferring your UK Pension to Australia can cost you money

Read More
WE MAKE IT EASY

Useful Links

Login Area
Product Documents
Client Feedback
Adviser Feedback

Main Products

Australian Expatriate Superannuation Fund
IVCM (Gibraltar) Retirement Annuity Trust
IVCM (NZ) PIE Superannuation Fund
International Expat SIPP

Jurisdictions

Australia
Gibraltar
New Zealand
United Kingdom

Quick Links

IVCM Offices
IVCM Products
New Advisers
Contact IVCM

© Copyright 2022. All Rights Reserved | Terms & Conditions | Privacy Policy 


All IVCM products are licensed and regulated in the jurisdictions in which they operate.

IVCM is not authorised to provide you with any personal or financial advice. If you require any advice in relation to your personal circumstances, you must contact a Qualified Financial Adviser.