Most SIPPs are only offered to UK residents, however, some SIPPs can be used by non-UK residents. International SIPPs are an extension of UK self invested pensions.
There are a few differences between International and UK SIPPs. They are structurally both UK pension plans, but there are some differences in terms of flexibility. They were created for pension transfers where QROPS are not appropriate or necessary. They allow for different currencies and are more suitable for people retiring abroad.
International SIPPs offer a wider product range, more control over where your pension money is invested and are often viewed more globally.
International SIPPs are subject to the same tax relief rules as UK SIPPs – where income must be declared to the HMRC. In addition, the trustees must report member payments. Like most personal pensions income can be drawn from the age off 55.
Other personal pension schemes and many occupational schemes can be transferred into a SIPP and cash contributions can also be made. There are limits on tax relief for the first 5 years of non UK residence if you are an expat, and the lifetime allowance limit (LTA) also applies which is up to 55% tax on funds over £1.055m.
If you live in a country without a double taxation agreement with the UK, income is subject to UK tax. It’s possible to reclaim an element of this, but it could also mean you are taxed in your country of residence.
SIPPS are always exposed to LTA limits in terms of tax liability both with the initial amount and future growth.
SIPP funds can usually be passed to beneficiaries free from inheritance tax – if the amount is under the LTA limit and death occurs before 75.
Set up costs and fees are generally lower than overseas pension schemes but the tax free lump sum allowance is limited to 25% per annum. SIPPS are flexible, too allowing full access to funds at 55.
SIPPs are an ideal way of consolidating several personal pensions that individuals accumulate during their working life. Consolidation reduces administrative complications further down the line. This is true for both international and UK SIPPs, although probably more important to expats.
Getting a pension review and a fresh valuation is the best way to understand what is the best pension scheme for you what it could be worth both now and in the future.
We build a pension solution to suit you and are dedicated to helping you achieve your financial and retirement goals. We help you take complete control of your money.
We collect all the required information on you and your pension details and get an understanding of your retirement plans. After this assessment we talk to you about the suitability of an overseas pension transfer or recommend that you leave your pension in the UK. We do not charge anything for a pension review.
If you want to switch we will make all the arrangements necessary for the pension transfer. Our fees are paid within the transfer arrangement so there is no need for you to send us any payment.
To find out more about how we can help you, simply leave your details and one of our advisors will arrange a time to talk or visit you.
Brite Advisors re-defined UK pensions for expats when they launched in 2016. Today, Brite Advisors leads the world in UK pension innovation with our low-cost investment platform and end to end solution. The Brite Advisors platform provides a seamless experience with the mission of maximising pension assets. Brite Advisors is a global company with offices and teams around the world dedicated to providing a financial planning experience like no other. For international SIPPs, QROPS or Direct Investing it’s your easiest investment decision.
Do you have questions about how Brite Advisors can help you. Please complete the form and we’ll get in touch shortly.