What does the Chancellors pension revolution mean for us?

deeplydad

I wonder if someone can help please. In February 2013, when I was 55 I consolidated two small pension pots and moved the combined amount off shore to a pension company in Malta. Do the chancellors changes mean that I can now take my money out if I chose to?

kidmugsy

Golly! Too specialist for me. I wouldn't be surprised if you had to wait for the new legislation to be approved during tax year 2014-15.

Or, on the other hand, will it be subject to the Law of Malta, rather than British tax law?

dunstonh

In February 2013, when I was 55 I consolidated two small pension pots and moved the combined amount off shore to a pension company in Malta.

Legally or unlawfully?

Do the chancellors changes mean that I can now take my money out if I chose to?

No. You no longer have a UK pension.

deeplydad

Totally legally under QROPS. As I am not married but in a happy, long term relationship the move enabled me to specify my partner as beneficiary in the event of my death. Something I couldn't do before.

atush

A, I thought you could nominate anyone (not just a spouse ) if it is non DB.

and B, if you are that committed why not marry instead of going to all the trouble of moving your pension to Malta?

Seems a lot easier, and it always more tax efficient for inheriting the rest

deeplydad

Yes I could nominate anyone. Marriage is not for us for many reasons that I'd rather not share here. Let's just say it's complicated.

atush

then there was no need to move the pension. As you could have nominated that person

gadgetmind

atush wrote: »

then there was no need to move the pension. As you could have nominated that person

Only prior to crystallisation. Afterwards, the pension can only be used for drawdown by a dependent, and for anyone else there is (currently) a 55% tax hit.

atush

I was assuming we were talking pre crystallization.

but as i said before, it isn't complicated unless one of you is married already

If you are committed (and I don't really care if one of you is pretending to be and isn't really lol) the best situation legally is to be married due to the legal and tax consequences. You can inherit from each other, pass assets between each other etc. all at nil tax

Marriage is really just a contract. It doesn't have to be religious.

OldDIYer

cepheus wrote: »

I guess these changes will create a more competitive market for drawdown, this is the current situation with only Fidelity offering a 'free' service but surely this will change? HL look surprisingly cheap for the drawdown part.

Find the best Sipp for drawdown

Thanks for highlighting Fidelity - I was struggling to find anyone cheaper than HL for a SIPP in drawdown - the ISAs and S&S a/cs on the rather long and winding road to II.

However the new rules will enable me to draw all the money out of the SIPP over a few years and put in our ISAs - keeping things simpler and with lower charges (dealing costs only with II as a/cs will be in place)