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Posted Fri, 05 Apr 2024 08:47:56 GMT by Bromley86
It's taken me a while to get to grips with the QROPS time-limit rules. I still have a few outstanding questions though. First the rules: 1. 10 year non-UK residency rule. 10 full UK tax years must have passed, which means you have to remain non-UK resident in the year of withdrawal as well (unless you finesse the split-year rules). 2. 5 year transfer rule. 5 calendar years from transfer. 3. Overseas Transfer Charge (OTC). 5 full UK tax years. Have to remain resident in the same country as the funds. 25% tax **applied to the funds remaining in your fund after your withdrawal**. I.e. if you're over 55 and withdraw the lot, you won't be penalised. Say I was 55 and so could withdraw the full amount under flexi-access. I do that. I'm non-UK resident, and resident where the funds are. So the OTC is irrelevant. Let's say I withdraw in 2024/25, and that only the 10 year non-UK rule is still in play. a. Am I safe from tax &/or penalties? b. Does that change if I return to the UK on 6 April 2025? c. Is a Double Tax Agreement relevant to any of this? Many thanks.
Posted Mon, 15 Apr 2024 13:26:29 GMT by HMRC Admin 32

HMRC cannot comment on future events as legislation may change.

Thank you.
Posted Mon, 15 Apr 2024 20:02:25 GMT by Bromley86
Thanks for your reply. Let's assume I've just made the withdrawal yesterday. Do you have an answer to (a), (b), and/or (c), assuming no change to current laws?
Posted Tue, 23 Apr 2024 10:43:20 GMT by HMRC Admin 8
As previously advised, HMRC cannot comment on future events as legislation may change.
Thank you.

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