UK Pensions for Expats - Court ruling today on Thailand

The European court decision has been finalised in favor of the UK Government and therefore, UK Pensioners will continue to have their pensions frozen.

Annette Carson who moved to South Africa in 1990 initially started the campaign after initially emigrating to South Africa and continuing to make full contributions, found her full pension frozen, when reached retirement in 2000.

Since then, there has been a series of court appeals and all of which have been overruled.

“As non-residents, the applicants did not contribute to the UK economy; in particular, they paid no UK tax to offset the cost of any increase in the pension” the court had said.

Whilst this to some may not cause any concern since may have been oblivious to having their pension frozen, it is also another chance to highlight the importance of pension planning and specifically, highlighting the Qualifying Recognised Overseas Pension Scheme (QROPS) which the UK Government had set up to allow freedom of movement of capital to existing pension pots.

Most pensioners when move overseas, do not always get correct financial advice on moving the UK pension into a QROPS scheme in order to release from the UK and stop an annuity.

“Pension A” day in 2006 was the start of this new scheme and since then, it has helped Expatriates overseas by allowing existing UK Pensions:
•    Freedom of Inheritance Tax
•    Freedom of Income Tax
•    Freedom to access to over 15,000 funds
•    Naming of a beneficiary to receive pension inheritance

Whilst this latest court ruling may now be a blow, it is worth chatting to your local advisor to see how you may, be able to maximise your pension income.

(Note – If already drawing your UK Pension, the QROPS scheme is very unlikely to be applicable as most cases to move offshore are declined)