QROPS transfers from the UK to Switzerland: current status

Various occupational benefits institutions, Liberty among them, used to be able to transfer pension savings put aside in the UK to Switzerland easily and without complications just as long as they were registered with the British tax authorities (HMRC).

Meanwhile, HRMC has considerably tightened the rules governing such transfers; henceforth, the holders of such pension assets will no longer be able to access them before the age of 55 (except in the event of disability). Withdrawals or pledges for the financing of home ownership (main residence) had already been prohibited for quite a while.

A list of the institutions authorised to accept pension assets is published on the HRMC website.

Like other Swiss occupational benefits institutions, Liberty is affected by the new restrictions; it is no longer listed as a QROPS-licensed institution and accordingly no longer qualifies to hold UK pension assets on a tax-exempt basis.

The new rules introduced by the UK authorities are not consistent with the current Federal Law on Occupational Retirement, Survivors', and Disability Pension Plans (BVG/LPP and ordinances) which authorises cash withdrawals before the age of 55 under the specific conditions set forth in Article 1i BVV2/OPP2 et seq.

The current situation is not satisfactory form our point of view, and we have entrusted our lawyers with safeguarding our interests. At the present time, however, it is unclear how long it will take to iron out the situation.

We therefore recommend that clients abstain from transferring their UK pension assets to Switzerland for the time being.

Before filing an application for the transfer of funds, existing clients are advised to contact us to ascertain the exact conditions applicable in their case and avoid any negative consequences.