Searching for the Best UK SIPP while living abroad? If you have recently moved abroad you may find yourself wondering sooner rather than later – what will happen to my old pension schemes?’
You may even be past this point already, where you’ve started planning for your retirement and have realised that not only will your provider not allow drawdown for non-UK residents (and neither will most other providers), but that most UK-based advisers will be unable to provide their services to you.
It’s an awkward situation for sure, and one of many hurdles that UK expats will face – but what is the answer? What is the best SIPP for anyone who is living abroad right now?
The solution: an International SIPP
The International SIPP is a flexible and FCA-compliant scheme that not only allows full flexi-access drawdown in your country of residence but allows you full control of your investments.
With your pension schemes consolidated into an International SIPP, you can dictate the risk level of the portfolio and how the funds are allocated across a range of ETF’s, bonds, mutual funds and other investment vehicles – meaning you can tailor your plan to meet your requirements and build a nest egg that will meet your retirement needs and more.
What’s so good about it?
The biggest advantages of the International SIPP lie in its versatility – namely its ability to fully comply with UK tax laws and allow non-UK residents full flexi-access drawdown, but also how it can be carefully structured to meet each individual’s risk preference and income requirements. But there is an array of other benefits you should know about:
- Withdrawals can be made on a monthly, quarterly, bi-annually, annually, or ad hoc basis
- Consolidate all your UK schemes into one easily-accessible, low-cost ISIPP that makes management and administration quick and easy
- Option to hold in multiple currencies – for instance; if you have pensions in the UK but have retired in Spain you can convert to the Euro so you don’t have to worry about volatile exchange rates
- Sometimes plans change – if that happens, it’s fine! – the ISIPP is fully-portable and can be transferred to a regular UK SIPP
Whether you’re employed, self-employed, unemployed or retired – anyone who is living abroad and wants full and unhindered access to their UK pension schemes would benefit from using the ISIPP.
Best UK SIPP While Living Abroad – What about tax?
- Tax-free growth – investments are not subject to tax at source and depending on your location there may be a double-taxation treaty in place which prevents your income being taxed if you have retired to one country and receive your pension from another – you would then simply need to apply for NT code for tax relief at source so that your income is paid out gross of UK tax and then declare in in your current country of residence (see below).
- For declaring your income in your new country of residence – it would be prudent to consult a local tax adviser who would be better placed to advise on these matters as every country will be unique – for example; if you are residing in France you would have the option to take your entire pension as a lump sum under Prelevement Forfaitaire, or you can opt for your pension income to be taxed according to your marginal rate
Harrison Brook – your guide to finding a pension solution
Harrison Brook are expat financial advisers – we specialise in giving advice to clients living abroad and who need pragmatic solutions to their financial issues. Our advice is always straightforward and honest – and our advisers take pride in guiding our clients towards the best solutions.
You can learn more about us here.
If any of the above sounds like your own situation and you need guidance with your pensions then please do reach out to us and we will do our best to answer your questions.
