The wisdom of BREXIT will no doubt be debated for decades to come. It will take many years to see what the long-term consequences are for the UK, Ireland and the rest of Europe. However, Irish residents with pension funds in the UK from previous employment, or privately held pension funds, are worried about leaving their money in the UK and want to know if it’s possible to transfer these pensions back to Ireland.
The good news is that it is possible to transfer Pension Funds from previous employment and private pensions in the UK to an Irish Pension Fund. Such transfers are possible under the ‘Qualifying Recognised Overseas Pension Scheme (QROPS)’ mechanism.
In most cases it is a relatively straight forward process:
- An application to set up a QROPS Pension is made with an approved Pension Company in Ireland.
- Transfer forms are requested from your UK Pension Scheme. These forms are completed and returned to the UK noting the details of the new Pension Scheme in Ireland.
- The UK Pension Scheme transfers your money directly to your new Pension Scheme in Ireland.
But why might it be a good idea to transfer your UK Pension back to an Irish Pension Fund?
✅ Local Advice – Your point of contact is an Irish Advisor instead of a UK Broker.
✅ Tax – A QROPS registered pension fund can accept transfers from the UK to Ireland without any tax liability.
✅ Inheritance – should you pass away it would be much easier for your family to deal with an Irish based Advisor than a UK based Advisor.
✅ Control – You will be able to get investment advice and make better investment decisions having an Irish based Advisor. Also when it comes to accessing your pension in later years you will have access to a local Irish Broker instead of dealing with somebody in the UK.
✅ Brexit uncertainty is removed
In summary, it is possible to transfer pension benefits from the UK to Ireland provided certain residency criteria are fulfilled and also where the receiving pension scheme / provider is operating under the QROPS system.
We have been advising clients all over Ireland for many years on the possibilities available to them when it comes to transferring their pension from the UK to Ireland.
Call or email us today and we would be delighted to guide you through your options.
Michael Coburn BBS, QFA, FLIA, LCOI, RPA, SIA
COMPLIANCE & FINANCIAL MANAGER
Michael has been providing tax, investment and lifetime financial planning advice to clients since 2005. He has an in-depth understanding of Business Owners and their requirements, which allows him to guide his clients through the complex world of long-term financial planning.