How does Brexit affect my UK pension here in Italy?

The people of Great Britain have spoken, and after a hard fought campaign, we have voted to leave the European Union. This causes uncertainty not only in the market place, but also in the hearts and minds of professionals stationed in Italy whilst simultaneously raising many questions.

- Will the pound continue to weaken against the euro?
- Will the value of my UK property decrease?
- What may be the tax implications on my UK pension?

And many more…

Although the future may not seem clear, deVere Italia are here to guide you through this uncertainty whilst providing sound and trusted advice to assist your medium to long term goals.

With regards to UK pensions, we currently enjoy the option of transferring UK contributions to a QROPS. A Qualifying Recognized Overseas Pension Scheme, or QROPS, is an International pension that meets certain requirements set by Her Majesty's Revenue and Customs (HMRC)The QROPS programme was launched on 6 April 2006 as a direct result of EU human rights legislation with regards to freedom of capital movement.

However, the UK is leaving the EU and it could transpire that the we are no longer subject to these rules. So the possibility that these current freedoms are taken away or a transfer overseas may no longer be 'tax-free' is a very sobering reality.

Therefore, I would strongly recommend that anyone in Italy with a UK pension, whether it is Defined Contribution or Defined Benefit (Final Salary) seek regulated and qualified advice on the options available to you, whilst the UK is still negotiating it’s divorce from the EU. If overseas pension transfers are blocked or taxed on exit from the UK, the pension freedoms we are currently enjoying will cease to exist.

Colin Eldridge
Country Manager, deVere Italia
+39 333 7271071