International financial advice firm Globaleye has apologised for inaccuracies in a pension guide on the company’s website.
Tim Searle, chairman of Globaleye, said his firm gives the most up to date information it can and added “with the fluidity of Qrops/Qnups it is easy to get out of date”.
He made these comments when FTAdviser flagged that rival advisers had complained about a “misleading” guide on his company’s website.
Mr Searle said: “What our clients get and what is on the website is completely different. I’ll apologise for the inaccuracies up there - we are reviewing them at present. It is one of the tasks the marketing team are doing now.
“We have an ongoing battle with making sure it is up to date. We are not a robo-advice or transactions company,” he added, stating that Globaleye clients have to sit down with an adviser.
James Pearcy-Caldwell, chartered financial planner at Aisa (CORRECT) International, told FTAdviser information in the guide, which was published on Globaleye’s website and able to be viewed last week, was largely out of date, misleading or inaccurate as different rules apply for different age groups and different countries.
The guide stated: “In the UK, all pensions have income tax deducted at the basic rate before they are paid out to the pensioner, whereas Qrop income will be taxed at the rate applicable to the country that the Qrop is based in.
“Due to double taxation agreements this can sometimes be 0 per cent.”
Christopher Lean, an IFA based in the Czech Republic, said this information was misleading, pointing out the level of taxation applied on pension income will depend upon the country where the retiree is the tax resident, the jurisdiction where the pension is based and the double taxation agreement between those two states.
Mr Pearcy-Caldwell added the guide ignored the initial £10,000 or so of income comes under a personal allowance in the UK, which is taxed at 0 per cent.
The guide also stated tax penalties do apply if you return to the UK within five years.
Mr Lean questioned what tax penalties there were and Mr Pearcy-Caldwell said he was unaware of any tax penalties applied by the UK to repatriates.
Another misnomer was the following statement: “If you leave your pension in the UK in a Sipp for example, you will pay your highest marginal income tax rate on the income taken – where ever you are in the world.
Mr Lean said: “This is nothing to do with UK Sipps, but how pensions are taxed and Qrops income should be declared and taxed too.”
The guide also stated a tax-free lump sum of up to 30 per cent can be drawn down from a pension, leaving 70 per cent for a regular income, however Mr Lean noted UK advisers referred to it as a pension commencement lump sum, and other countries tax this lump sum.