How will Brexit impact your UK pension?
"Many private pensions are covered under so-called passporting rules for financial companies. Without a deal, insurers and pension providers would be legally barred from sending out payments, leaving policies dormant on their accounts."
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Colin Gleeson, Irish Times, August 14th 2018
The reality of Brexit
The reality of Brexit is still unfolding and there is still much ground to be covered in negotiations. Brexit poses challenges and opportunities to all industries, not least to the pension industry.
Our priority is to ensure, whatever happens between now and the UK’s exit from the EU, our clients are not disadvantaged through holding assets in UK pension funds.
Under current legislation payments to non-UK resident beneficiaries of UK pensions would not be legal, new legislation most likely would be enacted to allow these payments.
Under the QROPS regime (a Qualifying Recognised Overseas Pension Scheme, or QROPS is an overseas pension scheme that meets certain requirements set by Her Majesty's Revenue and Customs) HMRC have been continually tightening the restrictions on transfers from the UK to other jurisdictions, in order to stem the flow of potentially taxable wealth from the UK. If Brexit happens, especially a hard Brexit, it may be that you cannot access your pension funds from outside the UK.
It is our view that in most circumstances, for Irish residents with UK pension assets, it would be prudent to transfer your fund to an Irish (or Irish based) provider.
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