How will EU Referendum affect provisions such as QROPS?
How will the EU Referendum affect provisions such as QROPS?
It’s the question on the lips of many British expats living elsewhere in the European Union – if the UK votes to leave the EU on 23rd June, how will that affect the Qualifying Recognised Overseas Pension Scheme (QROPS) arrangements?
QROPS came into existence in 2006 and the legislation was enacted to conform with EU rules about movement of people and capital around the EU. It seems logical that if the UK is no longer part of the EU, then these arrangements and tax benefits would be liable to change. Although expats in countries outside the EU can make use of QROPS, many thousands of expats within the EU will be wondering how the vote will affect their pensions, if at all.
The short answer is that nobody really knows what the situation with QROPS will be if the UK votes for Brexit. There will be potentially years of lengthy negotiations between the EU and UK government agencies such as HMRC over complex double taxation agreements before the situation becomes clear.
We know that this is a worrying situation and an unsettling time for many, and the uncertainty is unlikely to be cleared up quickly in the event of a UK “leave” vote. Rest assured that should this happen, we will do everything we can to keep our clients up to date with the very latest developments, and work hard to ensure that alternative arrangements are put into place or that QROPS provisions can carry on, unaffected by the UK’s position within the EU.
If you would like to discuss your QROPS queries with a UK Pension Transfer Specialist, contact us today for a fee-free initial meeting.
EU Referendum QROPS
