Tax Exiles Turn to QROPS
Published / Last Updated on 14/04/2010
by Ashley Clark, Director
A recent landmark ruling by HMRC on residency rules has pushed many non-residents towards Qualifying Recognised Overseas Pension Schemes (QROPS).
The British entrepreneur who claimed to be resident in the Seychelles lost his appeal last month because of falling foul of the residency conditions in IR20 (now HMRC 6 – the guidance on residency and domicile in the UK).
The ruling has quite rightly worried Brits living and working abroad because of not being able to demonstrate whether or not they were actually resident in the UK for tax purposes.
Many providers of QROPS have seen increased contact from Brits living abroad, keen to move their UK pensions overseas, to demonstrate they have left the UK with no intention to return.
Our View: The rules on residency in the UK are complex and not just a case of how many days you spend here in a tax year. One mistake can be very costly in terms of tax. We have experience of dealing with HMRC for our non-resident clients and know the pitfalls to avoid.
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