Tuesday, November 9, 2010

Can I get tax relief on European pension?

Could I switch to a European pension and still get the tax relief on my contributions? R. H.

Fiona Sharp, a chartered Financial planner with Almary Green, replies: Tax relief on contributions made by both employer and employee is one of the main benefits of saving through a pension.

To qualify for tax relief in Britain, you must contribute to a UK-registered pension scheme.

You would have to be permanently resident overseas to join an offshore pension arrangement, or to transfer into a qualifying recognised overseas scheme.

If you are concerned about the charges on your pension, consider reviewing the policy to see whether changes can be made.

A range of low-cost personal pensions and self-invested personal pensions (Sipps) has been launched in recent years and you may be able to make a substantial saving on fees and charges.

This Ask an Expert question appeared in Financial Mail

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