Move a UK pension to China

laowai1

Hi all.
I'm in need of some advice

I'm English and have a UK company pension of 11 years that is still held in the UK.
Last year I moved to live and work in China and now I would like to invest my pension pot into the property market in China. I have no intention to move back to the UK and need to plan for my future here.
Pension plans for foreigners here are limited and in my opinion, my best way to save for the future is property.

I have looked at a host of different information regarding accessing/ transferring a UK pension pot, but simply put, what I would like to do is 'close' my pension and use the cash to buy property in China.

Is this possible? Legal? Taxable?

Thanks for any help.
Laowai1.

Iancfp

No you cannot close pension

Once money is in UK Pension system and you have had tax relief HMRC keeps its eye on fund

A UK fund can transfer to a Qualifying offshore retirement pension scheme but looking at the list there is nothing listed for China

UK SIPPs would preclude residential property although possible commercial. You could try 3rd country with more flexible rules

How much is fund? If it is final salary it is worth keeping and can pay you a gross income post retirement if you remain in China

laowai1

Thanks Iancfp,

I looked at qrops (in Guernsey) and sipps but nothing enables me to invest in residential property here in China (AFAIK).
I guess a 3rd country might be a solution but I'm unaware at the moment of HMRC and the 3rd country’s regulations.

The fund is approximately 50k and is a final salary scheme, although with only 11 years contributions and another 30+ years until I retire, Chinese property will be more advantageous for me.

I will take a look at other countries to act as a middle man to move the fund to China, if anyone has any more advice it would be great.

Thanks.

ermine

and another 30+ years until I retire, Chinese property will be more advantageous for me.

I am awstruck by your unwavering confidence. Is this the traditional British fetish with property being transplanted to a different country or is it a peculiarity of the Chinese market that makes property a dead cert through the next 30 years

laowai1

ermine wrote: »

I am awstruck by your unwavering confidence. Is this the traditional British fetish with property being transplanted to a different country or is it a peculiarity of the Chinese market that makes property a dead cert through the next 30 years

Nothing is a dead cert but as I have already decided to make China my home I also decided to plan for my retirement here.
The property market here, as with elsewhere, is a gamble but for a foreigner in China, property is probably one of the better choices, at least for me... :beer:

Cook_County

How is the current plan taxed under Chinese domestic tax law?

How would the transfer to the QROPS be taxed under Chinese law?

ermine

property is probably one of the better choices

Preparing for your retirement in China is most wise, however, I would have thought that the usual investing priciples still apply, in respect of sector diversification... I would have thought that this , this, and this or even this would give some incentive to diversify. Just saying....

DVardysShadow

eggs, baskets

I would say use future earnings in China to invest in Chinese property and go with the flow on the present pension fund, investing in things which are possible and neither Chinese nor Property.

Loughton_Monkey

I don't think you will have any success transferring your pension to China, nor using it to buy property.

You should seriously consider whether or not Chinese Property is (or is not) the 'bubble' many people think it is. Secondly, you should understand (I expect you do) the difficulties [known as impossibilities when I lived there] of getting money out of China. Small amounts of personal cash earned from working there are fine (after tons of bureaucracy I must say). Those Brits with a business there could also get legitimate profits out - but only by clandestine uses of cash and suitcases. We were always told that profit on a property can only be taken out after a special tax for foreigners - usually set around the 100% mark.

For such reasons, a few Brits [some known to me] tried the 'alternative' of putting the property into the name of a willing and compliant Chinese lady. None of these ever saw the lady, or their cash, again.

laowai1

Thanks for your help guys.
Looks like it is impossible so I think I'll go the qrops way and forget about investing in property (at least from the pension plan).
Thanks.

Cook_County

Presumably the QROPS will still be fully taxable in China?