HELPLINE: 
The UK budget caused quite a stir and we’ve seen a ripple effect of shock in the expat community in response to the 25% QROPS (Qualifying Recognised Overseas Pension Scheme) charge.
The news. Up until 30 October 2024, UK or EEA residents could transfer their UK pensions without tax, but when the government axed the OTC (Overseas Transfer Charge) exemption, the 25% fee now puts UK/EEA residents in the same boat as the rest of the world.
Several solutions. As specialists in UK-France tax and finance systems, we can advise on numerous exciting alternative paths that will give you control over funds and accessibility that deftly avoid a 25% charge.
Don’t forget. Some think that QROPS was inheritance tax free, but remember that pensions and QROPS were never tax free for French tax residents. France taxes the global estate, including what is in QROPS and pensions. No matter which QROPS you have (trust or contract) they must be reported annually and failure to do so results in a €20,000 penalty.