Pension Transfer Tax

Feb 12, 2021

Brit expats in France can still move pensions without charges – but for how long?

Following Brexit legislation, DTB Wealth Management is advising expat clients in France to move their UK pensions to a QROPS as they won’t currently incur a 25% overseas transfer charge.

If you are a British expat in France, why would you move your UK pension to a QROPS? Daniel Butcher, founder of DTB Wealth Management and formerly a QROPS specialist at global insurance firm AXA, says that making this transfer as soon as possible is far more beneficial than leaving a “frozen pension” in the UK. This is because the recently-made Brexit deal does not yet demand an overseas transfer charge (OTC) of 25% when transferring to an EU-based QROPs.

“If you live in France and plan to retire there, you may be attracted to transfer your UK personal pension using the QROPS that is based in Malta,” he said. “This doesn’t mean your money is in Malta, it is the trustee that is based there, and the proceeds can be invested in a large range of international platforms or offshore bonds.”

The Maltese QROPS is attractive due to the double taxation agreement between Malta and France, which is also available in 76 other countries around the world.

In addition, S1 holders who move their UK pensions back to France using the QROPS route do not currently pay social charges, which brings a 9.1% tax discount overall.

With extensive experience at AXA helping all nationalities move pensions across to France – including those from Great Britain – Daniel is able to offer the most beneficial and lucrative options to his expat clients.

The independent wealth management firm, which excels at helping British expats in France with financial matters, works with a large range of QROPs and bond providers. “We are happy to connect our clientele with the most appropriate solutions for their needs,” said Daniel. “As we are France based and licensed under French regulations our fee structures are very low, which is why our services prove to be so popular.”

“This insurance-based investment scheme is highly advantageous and it is one of the best ways French residents can grow their savings in France.”

The company offers three main options to clients. One is for 35-55-year-old clients which runs at a lower cost as it spreads over 8 to 10 years before retirement. The second is a platform with no exit fees which holds a client’s assets until they are aged 55 and over. Solution three provides immediate in and out flexible access.

“The aim of all three options, is to enable our clients to withdraw from the QROPS, if they want to, from the age 55, to a French tax solution called Assurance Vie,” added Daniel. “This insurance-based investment scheme is highly advantageous and it is one of the best ways French residents can grow their savings in France.”

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