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.”