UK Pension Transfers To The UAE
Pension transfers are mostly considered when people are thinking of retiring in another country, or working and living there.
Since these amounts can be very high after a long period of time in employment, for most people, saving as much tax as possible on them is very important for those considering it.
Not only could this amount help secure your future, it can also provide capital to start your business in the UAE.
So what are the most important pieces of information relating to Transfer UK pension in Dubai - GlobalEye UAE.We take a look in this article.
What Are QROPS And SIPP And Which Is Right For You?
QROPS (Qualifying Overseas Pension Schemes) and SIPP (Self Invested Personal Pensions) are both schemes that have been devised to allow holders to transfer their pension money.
They also enable holders to put all their active pension savings into one unified account.
The SIPP structure usually caters to people who are looking to retire in the UK.
The QROPS structure is best suited for people who want to retire somewhere other than the UK, and the best facilities can be gained by people who are already living somewhere else, or looking to live there for five or more years.
- UK income tax may not apply on your pension income
- You can avail a lump sum amount which may not be taxed
- You may leave the whole pension amount for your beneficiaries
- You may be able to save yourself from the 55% tax for beneficiaries
The Double Tax Agreement
The recent double tax treaty signed between the UAE and the UK gives people the chance to avail the whole pension sum free of tax, thereby offering significant savings for people who own a pension fund.
Lump Sum And Tax Free
People living in the UAE could therefore be able to avail their entire pension pot without attracting tax liability, if they are older than 55, subject to the relevant rules.
What Do Experts Say About The Agreement?
The treaty has the ability to benefit anyone who has saved in a UK pension scheme, including UK and GCC nationals.
But these people have to be careful before they take out their pension amounts in a hurry, because their residency status needs to follow the rules.
So for people who have resided abroad for more than five years, the tax will not apply.
For people who have not resided abroad for at least five years, they can also take one-fourth of the total amount in pension without paying tax, and another 100,000 pounds, in most cases.