International SIPP for ex-pats

bostonerimus

atush wrote: »

Obvs, it i up to the OP to investigate his local tax situation. And as they said they would stay out of the UK, the 5 years would pass soon if not already.

My answer was to the OPs question about advantages. So that is one.

Tax is going to depend on where the OP decides to live and any double taxation agreement in place with where the pension is held. However, with such arrangements any perceived tax advantage is often eaten up by outrageous fees and expenses.

Newfangle

I am worried about Brexit. I am worried about further restrictions the govt puts on non resident pensions (like they did earlier this year in March). I am worried about pound and the inheritance tax.Most (all) non residents i have spoken to have moved their pensions for similary reasons.

Newfangle

and i can then fully control my pension (buy Vanguard funds if i like) instead of being stuck with the limited pension funds on offer which often high MERs.

Newfangle

i have spoken to 3 advisors but not engaged with any of them because other than the consistent advice of doing an Int'l SIPP they give different advice on where to offshore. QROPS is not an option since March 2017 with the new govt restrictions (i'd take a 25% tax on doing so as Switzerland is out of the EU). QROPS also cost a lot more than Intol SIPP. the Intl SIPP can buy any stocks or funds on any excnage around the world and would cost me 350 per year in fees + mgmt fees of the fund and trading fees. It is not as costly as some of you make out - i have done all that research.

Newfangle

I wrote no QROPS because my questions is about Int'l SIPPS not QROPS. This is not an option for a Swiss resident with the recent pension law changes for non residents. Switzerland is outside the EU. I have received consistent advice on doing an Int'l SIPP and am happy with that as i've done a tonne of research. What is not so clear with everyone i talk to (and there is little research online) is where to domicile offshore. I have done a tonne of research and was asking here (not down at hte pub) if anybody has this experience but apparently nobody actually does.

bostonerimus

Are you sure this "International SIPP" is actually offshore. My reading suggests that the "International SIPP" is a UK SIPP with access to investments that might be appropriate for an ex-pat. If you want to to offshore you need a QROPS. Can you post a link to the "International SIPP" you are considering and maybe you could also tell us what the costs to transfer and ongoing fees will be.

Malthusian

i have spoken to 3 advisors but not engaged with any of them because other than the consistent advice of doing an Int'l SIPP they give different advice on where to offshore. QROPS is not an option since March 2017 with the new govt restrictions (i'd take a 25% tax on doing so as Switzerland is out of the EU).

What you are posting makes no sense. If you are offshoring that means QROPS. Simple as that. Unless you want to pay a 55% unauthorised payment charge.

If QROPS is not an option then neither Gibraltar nor Isle of Man are options. If the International SIPP is not a QROPS, then it is held in the UK.

Either you have misunderstood what the advisers have advised or you are being badly advised.

I am worried about pound and the inheritance tax.

Having a UK SIPP or a QROPS makes no difference to Inheritance Tax - not the UK version anyway, and I doubt the Swiss system is different. From the perspective of the Swiss tax system, whether it's a QROPS or a UK SIPP it's benefits paid from a trust outside Switzerland.

Currency risk depends on your choice of underlying investment and you can have the same underlying investments within a UK SIPP or a QROPS.

and i can then fully control my pension (buy Vanguard funds if i like) instead of being stuck with the limited pension funds on offer which often high MERs.

Likewise, can be done under any UK SIPP or a QROPS.

Most (all) non residents i have spoken to have moved their pensions for similary reasons.

They probably moved their pensions because silver-tongued salesmen outside the UK regulatory system exploited their lack of understanding.

sandsy

Newfangle wrote: »

I wrote no QROPS because my questions is about Int'l SIPPS not QROPS. This is not an option for a Swiss resident with the recent pension law changes for non residents. Switzerland is outside the EU. I have received consistent advice on doing an Int'l SIPP and am happy with that as i've done a tonne of research. What is not so clear with everyone i talk to (and there is little research online) is where to domicile offshore. I have done a tonne of research and was asking here (not down at hte pub) if anybody has this experience but apparently nobody actually does.

Suggest you re-read my post above. If it's a SIPP, it's still a UK pension. SIPPs are defined in U.K. Legislation.

bostonerimus

It's lucky that the OP hasn't done anything yet as there is clearly some lack of understanding and fast talking going on somewhere.

Johnboy59

To be honest there is little difference between a SIPP & an International one. The difference is that for ex-pats there is a requirement for a Trustee to be appointed to ensure the extra due diligence is carried out (they will report details of your assets to the appropriate Tax authority). Yes there are extra charges but if you receive the appropriate advice then a decent advisor should find you a reasonable deal. The trustees, although based overseas are FCA regulated & one of their functions is to ensure your If you are a non-UK resident your rights are upheld under U.K. pension rules.