HELPLINE: 
If you’re in shock from the UK budget and the 25% tax on QROPS transfers, rest assured there are still solutions to your pension problems
In the wake of the new UK budget, many British expats in France are concerned by how the sudden 25% tax on transfers to QROPS (Qualifying Recognised Overseas Pension Scheme) policies will impact their financial future.
Up until 30 October 2024, UK or EEA residents could transfer their UK pensions without tax, but with the Overseas Transfer Charge exemption removed, the levy is now in line with the rest of the world.
Despite widespread dismay, there is hope for those who were considering moving their UK pension to a QROPS. Seeking out professional advice from a UK-France, cross-border tax expert can bring sensible solutions to light and unearth clever getarounds that keep pounds in pockets.
“As specialists in UK-France tax and finance systems, we can advise our clients on several exciting alternative paths that will still give them full control over their funds and accessibility while avoiding the 25% charge,” said Daniel Butcher, an Anglo-French financial adviser and owner of independent wealth management company DTB Wealth Management. “Our advice is always bespoke, depending on our client’s unique financial situation, and we always find a way to navigate both systems to maximise the wealth portfolios of our clients.”
Although some may think QROPS were inheritance tax-free, Daniel says it’s important to remind clients that pensions and QROPS were never tax-free for French tax residents. “This is because France taxes the global estate, including what is in QROPS and pension,” he said. “Some think that trust-based QROPS are not affected by inheritance tax, but this is false as they must be reported annually and failing to do so results in a €20,000 penalty.“
“We’re an independent company, unbeholden to no one, and we really care about taking the sting out of these thorny financial systems for Brits living in France. If anyone needs clarification about QROPS or any other policy – from assurance vie to SCPIs and succession planning – we’re happy to talk through options in as much detail as necessary.”
He added: “We’re so proud of how we engage with our clients, ensuring that they are on the most lucrative path. We love to know we’re helping to make people’s financial futures as bright and stress-free as possible.”
