Euro Sipp

ovis

Would appreciate any info if someone has already done this. Thanks.
Currently have a PP which am thinking of moving to a sipp, taking the 25% cash and leaving the rest at 0% drawdown. No contributions. Not working. Should be straighforward.
But I want to move and live in Euroland and my concerns are that stlg will depreciate substantially in the coming years either due to european expansion or GB joining. Is there a way to hedge against this and also avoid numerous currency exchanges?

Cook_County

Depending on the SIPP manager there is nothing to stop you holding foreign currency (including the Euro and non-Sterling denominated securities) in your SIPP.

I would however be far more concerned about the tax implications of your proposed strategy in the country where you intend to reside. How does that country treat UK pension plans? pension plans in drawdown? pension income etc?

Quiksilver_1

Hi as above it depends on what country you are moving to and whether you will be resident in that country for tax purposes. If you move to say Spain or Portugal you can arranage via the Inland Revenue and your SIPP provider to get an agreement to pay your pension gross to an account in Spain or Portugal and tax will be payable on this amount as per these countries. I am not certain of other EU countries but no it can be done for these two.

You really need to speak to someone who specialise in tax in the country you intend to move to.

ovis

Thanks info. Like most of Euroland they have double taxation arrangements with the UK.
So far it appears that monies earned in the UK like pensions and state pensions are liable for UK tax and this can be offset against tax liabilities in the chosen country or reclaimed back. However I need to talk to the International Dept to find out the finer points. Even so, if I hold the SIPP in Euros it seems likely that when I cash any of it they will convert back to stlg and then I will have to convert back again. The only other option I have come up with is to transfer the PP to a provider in the country that I'm going to and convert once. I would have to be employed or self employed to do this and it would need to be a "UK HMRC approved scheme"

Think you're right, need a professional in the intended country.