Personal Pension  

Ahead of April’s LTA deadline, deVere observes jump in Qrops enquiries

The founder and chief executive of international advisory firm the deVere Group said advisers in the firm have seen a 35 per cent increase in clients enquiring about transferring pensions into qualifying recognised overseas pension schemes (Qrops) in January, compared to the previous month.

Mr Green said: “As more and more expats become aware of how they could be hit by changes to the LTA limit, a growing number of them are taking steps to mitigate the effects by seeking advice on Qrops.”

From 6 April, the amount that can be saved tax-free in a pension will fall by £250,000 to £1.25m.

The reduction in the LTA threshold will put those with retirement funds in excess of the £1.25m limit at risk of facing taxes of up to 55 per cent.

Adviser view

Allan Maxwell, IFA at Glasgow-based Corporate Benefits Consulting, said: “Anybody who has the opportunity to reorganise their financial position in order to reduce the amount of tax is doing a fairly sensible thing. You could argue about whether they should have been allowed to save that much in a tax-free environment in the first place, but that’s a different process.”