TaxPersonal TaxTreasury closes pension loophole

Treasury closes pension loophole

A clause in a tax agreement with Hong Kong that would allow people to make tax free withdrawals from their pensions accounts has been amended by the government

THE GOVERNMENT HAS closed a loophole that allowed people to move their pensions abroad.

The Treasury took steps to prevent tax avoidance through the use of Qualified Registered Overseas Pensions (QROPS). This provision allows people who move overseas to liquidate their UK pensions.

But a clause in a tax agreement with Hong Kong, which comes into effect today, allowed people to move their pensions there while remaining UK resident. The Treasury became aware of this loophole and changed the legislation in the Finance Bill to amend this.

David Gauke, exchequer secretary said: ‘The government has set out a clear strategy on preventing tax avoidance. We will not hesitate to take action to stop those who seek to take unfair advantage of unintended tax loopholes. Today’s measure demonstrates our commitment to act quickly to close these.’

 

Related Articles

LITRG urges government to consider tax changes in disability work plan

Administration LITRG urges government to consider tax changes in disability work plan

1d Lucy Skoulding, Reporter
HMRC urged to clarify impact of income allowances on Self-Assessments

Personal Tax HMRC urged to clarify impact of income allowances on Self-Assessments

2m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

5m Emma Smith, Managing Editor
Rangers tax case to have ‘dramatic’ consequences for football and business

Legal Rangers tax case to have ‘dramatic’ consequences for football and business

5m Emma Smith, Managing Editor
HMRC collects record £5bn in inheritance tax

HMRC HMRC collects record £5bn in inheritance tax

6m Emma Smith, Managing Editor
The top three issues that the next government must address for accountants

Making Tax Digital The top three issues that the next government must address for accountants

6m Emma Smith, Managing Editor
HMRC cuts over 150 offices to reduce running costs

Corporate Tax HMRC cuts over 150 offices to reduce running costs

11m Stephanie Wix, Writer
Finance Bill 2017: Corporate tax reporting requirements 'a burden'

Business Regulation Finance Bill 2017: Corporate tax reporting requirements 'a burden'

1y Stephanie Wix, Writer