interesting article, thanks. Worth hightlightin(g via quotes below) that it may not neccessarily be ideal for those intending to draw down in Italy though:
[quote]While the QROPS scheme will free you from UK tax, you may be taxed in the country in which it is based and in your new country of residency
......
......
Local income taxes in Spain and Italy can leave some people worse off, depending on their situation, although the IHT savings and access to cash after five years could make QROPS plans worthwhile in the long run[/quote]
also, obvious - but worth repeating (never ceases to amaze me how many people will overlook the obvious downsides when given an attractive sounding proposition!):
[quote]
The Government forces people to buy annuities because they pay an income for life. If you take all your pension fund as cash there is a risk you could spend it all and have nothing to live on[/quote]
It may though offer a way back to the original idea of SIPPS (before the Treasury did a U-Turn), where you could invest in property abroad within your pension and thereby purchase it very tax efficiently (that did, IIRC, require you to pay market rate for any personal use you made of the property though!)
interesting article, thanks. Worth hightlightin(g via quotes below) that it may not neccessarily be ideal for those intending to draw down in Italy though:
[quote]While the QROPS scheme will free you from UK tax, you may be taxed in the country in which it is based and in your new country of residency
......
......
Local income taxes in Spain and Italy can leave some people worse off, depending on their situation, although the IHT savings and access to cash after five years could make QROPS plans worthwhile in the long run[/quote]
also, obvious - but worth repeating (never ceases to amaze me how many people will overlook the obvious downsides when given an attractive sounding proposition!):
[quote]
The Government forces people to buy annuities because they pay an income for life. If you take all your pension fund as cash there is a risk you could spend it all and have nothing to live on[/quote]
It may though offer a way back to the original idea of SIPPS (before the Treasury did a U-Turn), where you could invest in property abroad within your pension and thereby purchase it very tax efficiently (that did, IIRC, require you to pay market rate for any personal use you made of the property though!)