Paphos Post

[gerryg]

https://thepaphospost.com

Has anyone seen the article here by Nick Cairns of Blevin Franks which says that pensions from the Uk will from Oct 2024 be subject to a 25% transfer charge. If I am reading the article correctly its as a result of the recent UK budget.

I have never seen this mentioned anywhere else and it seems odd to say the least. And I hope I have got it wrong

Has anyone else read the article?



Gerryg

[gerryg]

paphos post

I should have addded it refers to pensions paid into Cyprus, among others

Gerryg

[Chaddy]

Incredible,,,there are couples living here i know who are barely getting by on their UK state pension only.

What on earth will they do?Will they all have to go back to the UK as they will not survive with a 25% reduction.

[trevnhil]

All I can add to the melting pot is that my November UK state pension was paid into my Cyprus account with no deductions. So was my December state pension, and also the UK 10 pounds Christmas bonus.

[clive of payia]

You would get a letter from DWP if there is a change to your OAP. Beware of so-called "Financial Advisors" always check their financial educational background. In the UK, I found one was formerly a bricklayer, no slur intended on bricklayers.

[gerryg]

Yes Trev. My company pension was paid into my cyprus bank account without deductions. I dont bring over my state pension but my brother does and no deductions were made,

I am wondering if I am misunderstanding the article; after all getting around it would be a fairly simple matter. One could simply have the pension paid into a UK bank account and then use a currency transfer company to bring the money into Cyprus. And I am sure there would be other solutions that an accountant could advise on.

Gerryg

[Oxfordboy]

I think you misunderstood the article, and it doesn't seem to be related to the transfer of existing UK pensions to a Cyprus bank The gov.uk website says:

Who is likely to be affected

• Individuals who want to transfer part or all of their pension to a Qualifying Recognised Overseas Pension Schemes (QROPS) established in the European Economic Area (EEA) or Gibraltar.

• Overseas Pension Schemes (OPS) and Recognised Overseas Pension Schemes (ROPS) established in the EEA.

• Scheme administrators of a registered pension scheme who are not resident in the UK.

The Overseas Transfer Charge (OTC) is a 25% tax charge on transfers to QROPS, unless an exclusion from the charge applies.

[gerryg]

Hi Oxford boy
Well I hoped that I had misunderstood it. But it does beg a couple of questions.

First , if it does not apply to state pensions ,company pensions etc, to what pensions does it apply?

And two , if as it seems it does not apply to the majority of pensioners should that have been made clear in the article. That is use plain language.


The questions are rhetorical as I feel you are right.

Gerryg

[souniman]

From what I can see it applies to transfer of pension schemes from uk. Not pesion payments from UK pension proivders.