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Hot investments: It’s time to get creative

By Chris Burke - Topics: Barcelona, Investment Risk, Investments, spain
This article is published on: 18th June 2019

18.06.19

Investing needs savvy, like a game of chess. It’s best to make carefully thought through moves so that it’s not left to chance. The most crucial part of investing is being in the know.

As a financial advisor, this is something I research and stay on top of so that I can best inform clients. And I only recommend what investments I would feel confident investing in myself. That is very important for clients to know.

When it comes to the stock market, it’s about knowledge and catching the wave at the best time. Right now in the world of investment it’s prime time for investing in some promising and exciting creative industries, namely the e-sports /online gaming industry and AI (Artificial Intelligence).

As we all know, the internet, Amazon and Netflix have totally changed the entertainment industry. We are no longer controlled by which shows are on television or in the cinemas, as we now have the luxury of watching whatever we want whenever we want. But perhaps the most massive surprise in the past year has been the overwhelming popularity of esports – which is simply fans watching professional video gamers compete online. Ever heard of Twitch? Well, there are more people logging on to watch pros gamers competing on streaming sites like Twitch than there are watching CNN or NBC.

Last autumn, a shocking 57 million people tuned in to watch a professional video-gaming (esports) match. It was triple the audience of the actual 2018 NBA finals. As a result of this success, the biggest companies including Coca-Cola and T-Mobile have spent hundreds of millions to sponsor these matches.

So, as e-sports and gaming continue to conquer all, which types of companies might be good to get in on? The top gaming companies you might want to consider investing with are Nintendo, Valve Corporation, Rockstar Games, Electronic Arts, Sony Computer Entertainment, Ubisoft or Sega Games Co. Ltd.

investments in games company

And behind every great game is the hardware required to make it fanstastic. NVDA might not be a name you’ve heard, but literally all video games require ultra-high-performance chips and NVDA chips are the crème de la crème, used by over 85% of professional gamers.

(Forbes, 2018)

The ever-growing world of AI (Artificial Intelligence) has been booming and helping companies solve and manage many previous b2b and b2c issues and right now France is aiming to be one of the forerunners in the industry. Last year President Macron announced his government was investing €1.8 billion over 4 year period. A few of the top French AI start-ups are insurance fraud detection companies like Shift Technology; the AI voice assistance platform, Snips, which manufacturers can utilise for their products and Saagie, the online protection platform to store and guard our precious data for banks and insurance companies.

So, there are some exciting and creative opportunities for investment out there but as a financial advisor, when it comes to investment portfolios research and timing are crucial, as is ensuring clients are in a financial position where they able to play the market without the fear of losing their life’s savings.

Before considering any investments, I always start by advising clients to ensure they have sufficient funds they can access quickly and easily and then discuss what length of time they would like to invest other sums for, as it’s my first priority to nurture and protect their financial future. I would not recommend any client to invest in something that I would not invest in myself, but each client is well-informed in the knowledge that if they have the money to try their hand at investing, it is of course a risk. But it’s a risk that can be rewarding and a real learning experience as well.

Qu’est ce que la “Loi Beckham”?

By Cedric Privat - Topics: Barcelona, Beckham Law, spain
This article is published on: 20th May 2019

20.05.19

Depuis 2005, le Real Decreto 687/2005, également appelé “loi Beckham” (David Beckham en fut le premier bénéficiaire), permet aux nouveaux résidents espagnols d’obtenir une importante réduction fiscale.

En effet ce régime spécial des impatriés permet aux contribuables d’être imposés au taux fixe de 24 % jusqu’à € 600 000 de revenus annuels, puis à 45 % une fois dépassé ce seuil, et non au barème progressif de l’impôt sur le revenu ou IRPF (“Impuesto sobre la Renta de las Personas Físicas”).

Il s’applique la première année de résidence et les 5 années suivantes. Toute personne ayant un nouveau contrat de travail en Espagne (ou statut d’administrateur) peut potentiellement opter pour ce régime auprès de l’administration fiscale (sauf si vous avez résidé en Espagne pendant les 10 dernières années).

La demande doit être déposée dans les 6 mois à compter du début de votre activité qui apparaît sur l’inscription à la sécurité sociale espagnole. Quant à l’impôt sur le patrimoine, seul votre capital en Espagne sera susceptible d’être taxé.

Je me tiens à votre disposition si vous souhaitez de plus amples informations sur ce sujet, ou si vous désirez opter pour ce régime fiscal.

N´hésitez pas à me contacter

The Many Benefits of a Financial Adviser

By Chris Burke - Topics: Barcelona, Financial Planning, Financial Review, spain
This article is published on: 3rd April 2019

03.04.19

by Jannah Britt-Green

It might seem obvious to some, but when it comes to the genuine benefits of having a financial adviser, many people are still in the dark. Some people hold certain ideas or common misconceptions, which hinder them from receiving valuable advice and help with managing their financial life. Namely, people struggle to trust someone else with their money and they believe they will have to pay the financial adviser for their services.

When it comes to trusting someone else with our money and investments, yes – it is a chance we’re each taking. But if you find a good financial adviser, you can trust that they sincerely have your best interests at heart, because they will only gain if you gain. They are educated and experienced at helping clients to come up with an effective plan – a financial philosophy if you like – for choosing wisely and preparing for tomorrow. They also have the objectivity we lack when trying to make financial decisions. They aren’t bound by the emotional ties we have with our money and they understand the complexities of mortgages, investments taxes and laws, so they can help us make better informed decisions without so much stress.

Then comes the assumption that we will have to pay a financial adviser. This is most likely due to the fact that no one believes any good service – especially one wherein you could make money – could possibly come without a price tag. Not only is this untrue, but having a financial adviser can actually SAVE money. This is because financial advisers don’t make money from their clients directly. Instead, they get a cut from the insurance / investment / mortgage companies for bringing your business to them. Even better is that, due to the relationship the financial advisors build with these financial institutions, they by and large get a better deal than clients would receive if they were to try to get the same service on their own. I have tried and tested this out myself by looking into getting the same insurance through the same company on my own and found that I could not find the same deal that my financial adviser was getting me. From this point on, I was convinced.

Recently I interviewed IFA Chris Burke, an experienced financial adviser who has been living in Spain over the past decade, to ask him what he believes are the main ways he has helped and continues to benefit his clients.

The Truth
Like any profession, we as Financial Advisers know what works and what doesn’t, and how well it works. To be a good financial adviser, you have to ask yourself, ‘Is this what I would do?’ or maybe even more telling, ‘Is this what I would recommend my mum to do?’

Honesty
Always tell the truth, even if that means telling them we can’t benefit them at that time. I will always use my experience to help people make the best decisions for them and help them do it, if they desire my services. What we do isn’t for everyone and their circumstances, but it might be one day.
Good Tips/Hints/Advice

People usually come to me for a meeting to see how I might be able to help them, but if occasionally someone isn’t sure whether it’s worth the visit, I will always confirm ‘You will take something beneficial from the meeting; knowledge, advice or a good contact; like a recommended Tax Adviser, or how to top up your UK National Insurance contributions at a discount, there is always something’. And you can continue to receive my advice, free of charge, by subscribing to my newsletter: Chris Burkes Newsletter

Grow Clients Monies/Pensions
If it’s not working, most clients won’t stay with you for long, especially if other solutions/the stock markets are indicating it should be working. Therefore, we continually keep up/outperform these as much as we can. We as advisers invest our monies/pensions where we recommend clients to, which for me is the biggest testimony.

Ongoing Advice/Knowledge
There is no point in having a ‘leaky bucket’, that is to say making client’s money grow but not optimising their tax situation. We are always informing, giving our clients knowledge on the best way to mitigate this and who can help them do it.

Due Diligence
We don’t always get it right, but listening to the experts whom we hold in high regard helps us to get it ‘more right than most’. And we are continually reviewing solutions to find new ways to help clients more.

Savings Bank Account Comparison in Spain

By Chris Burke - Topics: Banking, Barcelona, Saving, spain
This article is published on: 5th March 2019

05.03.19

The most efficient way of losing money is to keep it in a current account. Many years ago offset mortgages were introduced, which were a great way of saving interest being paid on your mortgage. Effectively, any interest on savings you had in an account that was linked to your mortgage account, reduced the mortgage payments by that amount, more or less (most simplified explanation). So, if you had a mortgage of €250,000 and savings on a linked account of €50,000, each month it’s almost as if the mortgage was only €200,000 and you would only pay interest on that amount.

To understand why current accounts are the main way to lose money, let’s suppose,for example, you have €50,000 sitting in a current account for a rainy day. Inflation has been running at around 3% lately (that’s the increase in the regular items we buy). Therefore, just for your money to KEEP UP with that, it needs to grow by €1,500 per year. Over a period of 4 years that’s €6,000.

Therefore, it is very important that you have this money working for you, especially after the hard work it took you to earn it, both to keep up with inflation so it keeps its purchasing power and to grow to build your wealth.

The very least you should do is have the money in a savings account, or similar. So what are the current bank savings rates in Spain? Well, they will guarantee to lose you money every year, but they are better than having money sitting in your current account:

  • 1.5% ING – interest rate per annum, deposit term 1 month
  • 0.5% WeZink (Banco Popular) – interest rate per annum, paid given monthly
  • 0.3% BNP Paribas – interest paid quarterly

Another way of keeping your money safe and perhaps earning a larger return if you are lucky, in sterling, is having UK Government backed Premium Bonds (annual prize fund interest rate of 1.4%). Did you know that you don’t need to be British OR live in the UK to have these?

If you would like to explore other options, then feel free to get in touch and we can discuss what will work for you AND your money, giving you flexibility along the way. Knowledge and advice will help you plan your finances.

Does Qrops or transferring your UK Pension overseas work?

By Chris Burke - Topics: Barcelona, pension transfer, Pensions, QROPS, spain, UK Pensions, United Kingdom
This article is published on: 4th March 2019

04.03.19

Those people who have a UK private or company pension and are resident outside of the UK, more often than not have the choice to transfer their pension to a QROPS (Qualifying Recognised Overseas Pension Scheme), that is the process of moving your pension outside of the UK. However, what are the important points to note with this, how does it differ from having your pension in the UK and most importantly, does it actually work effectively?

For just over 10 years you have been able to move your pension outside of the UK. Over that time, I have seen mixed success at doing this, with the companies providing this service changing, fees in essence reducing and the options of managing this growing. What has also changed is the benefit of doing this, alongside the advice you receive. Unfortunately, I have come across many cases where this has not worked well, and the reasons are nearly all the same: bad advice was given by the financial adviser who put their clients is funds/pensions that were overpriced and expensive.

To summarise, the current key potential benefits of Qrops would be the first step to seeing if this could be the right choice for you:

  • Pension potentially outside of future UK law changes
  • Brexit and the impact it would have on being a British person living in Spain
  • Potentially side stepping an expected 25% tax charge for moving pensions after Brexit
  • Currency fluctuation (ability to change your pension to euros when convenient)
  • Portability – the ability to move your pension in the future if needed
  • Potentially reduced tax liability
  • Inheritance – potential reduction of tax to beneficiaries or potentially lower tax on death (depending on your country of residence)
  • Peace of mind
  • Closer personal management of your pension
  • Tax efficient (working alongside a local tax adviser) potentially

And what are the key points that might mean Qrops is not right for you:

  • Returning to live permanently in the UK in the next five years (or maybe longer)
  • Pensions total value under £60,000 (the charges would be, in my opinion, punitive)
  • A company scheme where the benefits outweigh transferring
  • In the near future, wanting to take most of the money from your pension
  • Not having your pension in a Qrops managed well and expensively

From the perspective of access to your money, there is currently not much difference to having a personal pension in the UK or a Qrops. With the rule changes a few years back, you can, in essence, get access to your UK pension from age 55 in the UK and as much as you like, just as in Qrops.

Where Qrops really can help is moving an asset away from the UK and any potential rule changes, which have been regular over the recent years (mainly worse for the person owning a private pension). Couple that with Brexit and a potential 25% tax charge, then having your pension outside the UK will give you peace of mind in knowing exactly what the pensions rules would be for you moving forward. Also, given the fact that if you did ever move back to the UK (statistics show that for a British couple, there is a 75% chance one of you will go back at some point), you can transfer it back with you (there could also be tax benefits of doing this) and with some pension companies no charge.

However, perhaps the most important question is, does it work? The simple answer is yes it can, BUT it has to be set up the right way, with the right company and if you are given the right advice for what your pension is invested in. Basically, it needs to be done for your benefit, not so that the adviser can earn as much commission as possible from your pension.

Whenever I take a new client on, I always ask them if they would like to speak to an existing client to see what their experiences were, which is what I would do when performing my own due diligence.

If you would like to talk through any pensions you have and what your options are, feel free to get in touch and know that you will be given good advice, whether you become a client or not.

G transferred her pension 4 years ago; it has grown significantly over that time. “Chris has always been consultative and there when we need him.”

J transferred his pension 6 years ago. “It has grown well over that time. Whenever I have needed money from my pension Chris has arranged this for me. I would recommend him for sure.”

C transferred her pension 5 years ago. “It has grown steadily in that time (I am a cautious investor) and since then my husband and I have asked Chris to help us with our other investments.”

Récapitulatif sur le MODELO 720

By Cedric Privat - Topics: Barcelona, Modelo 720, spain
This article is published on: 25th January 2019

25.01.19

Qu’est-ce que le Modèle 720 ?
En 2013, le gouvernement espagnol décide de s’attaquer à la fraude fiscale. Il met alors en place un certain nombre de mesures.

Visant en priorité les nationaux espagnols, cette réforme affecte également les étrangers vivant et/ou travaillant en Espagne disposant d’un patrimoine en dehors de la péninsule Ibérique.

Le Modèle 720 est une déclaration informative mais obligatoire sur les biens et avoirs à l’étranger.

L’objectif de cette démarche est de disposer d’informations sur:
– les comptes bancaires situés à l’étranger
– les titres, droits, assurances-vie et placements gérés ou acquis à l’étranger
– les biens immobiliers et les droits sur les biens immobiliers à l’étranger
Ce formulaire dûment rempli doit être présenté entre le 1er janvier et le 31 mars, uniquement par internet (via le site “Agencia Tributaria – Modelo 720 Declaración Informativa. Declaratión sobre bienes y derechos situados en el extranjero”).

Qui doit présenter le Modèle 720 ?
Toute personne physique ou morale résidant sur le territoire espagnol (plus de 183 jours par an), et uniquement si la somme de ses actifs est supérieure à la somme totale de 50 000€ dans une ou plusieurs des trois catégories.

Les années suivantes, il n’est demandé de représenter le Modelo 720 qu’en cas d’augmentation de plus de 20 000€ par rapport au capital initialement déclaré.

Quels sont les risques en cas de non-présentation?
Même si cette déclaration n’a pour but que d’informer, le gouvernement espagnol menace d’appliquer de lourdes sanctions en cas de non respect de cette mesure.
– 5 000€ pour toute information incomplète, erronée ou fausse, avec un minimum de 10 000€ d’amende par déclaration.
– 100€ par information, avec un minimum de 1500€, si la déclaration a été déposée au delà de la date limite.
– Si l’Hacienda se rend compte de l’absence de déclaration, les sanctions annoncées sont extrêmes (par exemple, 150 % de la valeur du bien, plus-values sur tout patrimoine non justifié)

De nombreuses plaintes ont été déposées afin de contester ces sanctions excessives et injustes, la commission européenne serait également en contact avec les autorités espagnoles sur ce sujet.

Néanmoins, il vous est fortement conseillé d’effectuer cette déclaration afin d’éviter tout problème avec Hacienda.

Plusieurs conseillers fiscaux francophones à Barcelone, dont je me propose de vous fournir les coordonnées, peuvent vous apporter leur aide pour remplir ce formulaire.

Je reste à votre entière disposition pour vous fournir tous renseignements complémentaires.

Inheritance Tax in Catalonia

By Chris Burke - Topics: Barcelona, Catalonia, Catalunya, Inheritance Tax, spain
This article is published on: 11th October 2018

11.10.18

In the circle of life, it’s an unfortunate occurrence that parents or relatives pass on from this world we live in and leave an inheritance, whether that is property, money, investments or other assets. The value of this inheritance may or may not be the kind you are used to having or looking after, and that is where we/ I come in, to make sure this your inheritance is safe and looked after, taking into account your life situation both now, and in the future.

How is this inheritance taxed in Catalonia though? I hear many stories or ideas among people I meet but no one seems to know for sure, or get it right anyway. One of the reasons for this is that it depends on where the money comes from, i.e. which country and what asset is being received. Many of my clients are from the UK, how does it also work there? In the UK it is usually very simple, if someone dies being resident in the UK and leaves you assets up to £325,000,there is usually no Inheritance Tax (Paid by the estate); anything over this is taxed at 40%. However, in Catalonia it is not that simple (Surprise surprise, I hear you say!) and alongside what is declared and maybe tax payable in the UK, you must also declare and pay the relevant tax here

Firstly, Inheritance tax in Catalunya is paid for by the receive, not the estate, and very importantly, you have 6 months to declare this inheritance, EVEN if you haven’t received it yet (this is from the date of decease) or you will be fined the following way, on the amount of tax you are liable to pay:

  • 5% in the following 3 months (i.e. months 6-9 since death)
  • 10% from 3 months to 6 months
  • 15% from 6 months to 12 months
  • 20% plus interests after 12 months

The good news is that there are discounts on inheritance tax in Catalonia, and most people are surprised by the amount of tax they have to pay, in a good way. To start with, there is usually no tax to pay on the first €100,000 being received if you are a child or spouse of the deceased. If you are a parent of the deceased, the allowance is €30,000 and any other relative receives a €50,000 nil tax amount including grandchildren.

From this point on, there are further reductions between 97-99% and there are also other factors to be taken into account, such as are the children under 21, disabled or if from a family business. The quickest and simplest way, I feel, to give you an idea of what tax you would pay is if I use the most common example, of a parent living outside of Spain, leaving their child whom is living in Catalonia an amount of money/asset not including property (there would potentially be extra tax deductions for receiving this):

Example (guideline) of someone tax resident in Catalonia, inheriting from a parent in the UK:

Amount to be inherited Tax due in Catalonia
€100,000 €0
€250,000 €383.82
€500,000 €4,300.05
€750,000 €16,866.68
€1,000,000 €40,473.29

These are approximate and we always suggest getting in touch to confirm exactly what the amount would be, and for help declaring it. For the assets themselves, it is worth knowing that many assets overseas are not always efficient to have while living in Catalonia. For example, investments or Isas in the UK are declarable and tax payable on any gain in Spain annually, EVEN if you do not take any of the money, unlike in the UK. This is where we help our clients to get organised efficiently and manage the assets if needed.

If you have any questions relating to any of these points, or anything similar, don’t hesitate to get in touch.

Click here to receive important Financial/Tax related updates

UK Investments & ISAs – Tax Treatment in Spain

By Chris Burke - Topics: Barcelona, Captial Gains, dividends, Investments, ISAs, Premium Bonds, spain, Tax, UK investments
This article is published on: 16th April 2018

16.04.18

With automatic exchange of financial information between most countries now standard practice, most of us already recognise the importance of declaring our assets properly and fully. In the UK, if your accountant or tax adviser declares your assets incorrectly, they are liable; however, that is NOT the case in Spain. I have been contacted by many people with various stories of how their accountants in Spain have reported assets. Sometimes it feels like people are speaking to numerous accountants until they find the one with the answer they want – if the declaration is incorrect though, and leads to an investigation, you are personally liable. Therefore, it is essential to have your assets reported correctly.

It is quite straightforward to understand the Spanish tax treatment of your UK assets. If they are NOT Spanish compliant – that is to say, not EU based and regulated AND the company holding these assets doesn’t have a fiscal representative and authorisation in Spain – then income and investment growth are taxable annually. Note that investment growth on assets such as shares, ISAs and premium bonds is taxable regardless of whether you have taken any income or withdrawals.

Below you will see the main list of investments that need to be declared and the tax rates that apply annually:

Type of Assets/Investment Tax Payable Type of Tax
Investment funds/stocks/shares Yes, on growth Capital Gains Tax (19-23%)
ISAs Yes, on growth Capital Gains Tax (19-23%)
Premium Bonds Yes, on gain/win Income Tax (19-45%)
Interest from Banks Yes, on growth Capital Gains Tax (19-23%)
Rental Income Yes Income Tax (19-45%)
Pension Income Yes Income Tax (19-45%)

Expenses may be able to offset some of the tax on gains, and for long term property rentals you can receive up to 60% discount on net rental income. However, tax reliefs and allowances that applied in the UK are not available to you in Spain.

There are ways of reducing these taxes, by having your finances organised correctly, and in many cases there is also scope to defer tax. This means there is no tax to pay if you are not taking an income or withdrawals from your investment. In fact, the more your money grows, the greater the potential tax saving.

The first thing you should do, and any financial adviser or tax adviser should do, is consider ways of mitigating your tax, both now and in the future. Otherwise you could end up with a ‘leaking bucket’. Many accountants are starting to increase charges for declaring UK assets, which need to be listed individually and where there is often lack of familiarity with the assets held. By the time you have paid the tax for NOT drawing your money, paid your accountant and lost any tax relief that applied in the UK, in most cases there are more cost effective, tax efficient, Spanish compliant options available. Furthermore, for those returning to the UK, there is still generous tax relief which applies to certain Spanish compliant investments.

For an initial discussion regarding your finances and practical guidance on planning opportunities, please get in touch – my advice and recommendations are provided free of charge without obligation – chris.burke@spectrum-ifa.com

Taking a Lump Sum from your Pension when Resident in Spain

By Chris Burke - Topics: Barcelona, Pension Lump Sums, Pensions, spain, UK Pensions
This article is published on: 13th April 2018

13.04.18

There are conflicting stories on how much lump sum/one off amount can you take from your pension if resident in Spain and what the tax will be. Indeed, many people with UK pensions believe it is better to take their UK pension lump sum in the UK before (grey line here if they have already moved!) they move to Spain permanently, as they will pay less tax. Firstly, even if you have a UK pension but are resident in Spain, this has to be declared in Spain. Secondly, if you finished contributing before 2007 you actually can receive MORE tax relief in Spain than in the UK (dependent upon the pension you have and how you take it).

To clarify, in the UK you can currently take a 25% tax free amount from all your private pensions and anymore would then be taxable.

If resident in Spain, you have the right to take up to 100% of your personal pensions in one go (100% in capital), to receive part in capital and part through regular payments or to receive the whole amount through regular payments. If you receive an amount in capital (a whole or a part) then you can apply for a tax reduction of 40% of the amount received for any contributions you made prior to 2007. This option can only be applied once, so, if you have more than one pension plan, you have to receive all of them in the same tax year if you want to apply this reduction. To clarify, it is the value the contributions have accumulated to today that is tax exempt, not the amount of actual contributions made back then.

From January 2007 there is no tax exemption, zero. Therefore, any contributions made from this point receive no tax exemption, however if the contribution to the pension runs before and after this date the tax exemption is calculated the same way.

If you take the amount as a regular payment you will have to pay income tax as if you have received any other general taxable income (a salary for example). In both of these cases, the amount that is taxed (with or without the 40%) is subject to the general income tax rate.

Lump Sum Pension Tax in Spain Lump Sum

Total amount of pensions: £150,000
Amount to be taken in lump sum/one off: £50,000
Amount tax exempt in Spain: £20,000
Pension lump sum amount income taxable: £30,000 (added to your annual income tax band)


Now if we look at the UK example we shall see the difference:

Total amount of pensions: £150,000
Amount to be taken in lump sum: £50,000
Amount tax exempt in UK: £37,500
Pension lump sum amount income taxable: £13,000 (added to your annual income tax band)

 

However, in the following scenario the Spain example works more in your favour:

Lump Sum Pension Tax in Spain Lump Sum

Total amount of pensions: £100,000
Amount to be taken in lump sum/one off: £100,000
Amount tax exempt in Spain: £40,000
Pension lump sum amount income taxable: £60,000 (added to your annual income)

 

UK Example

Total amount of pensions: £100,000
Amount to be taken in lump sum/one off: £100,000
Amount tax exempt in Spain: £25,000
Pension lump sum amount income taxable: £75,000 (added to your annual income tax band)

Important points to note here are:
If you cash in your UK pension OVER 25% and are registered in the UK as a non resident, an emergency tax code is likely to be used up to 45% and you will have to claim back what is owed to you. Unless you are able to provide a P45 from the current tax year following withdrawal from employment and/or current pension plan,

or

The pension provider already holds a P45 or up to date cumulative tax code received from HMRC as the result of previous withdrawals from that pension plan, and can apply it.

If you take your UK pension as a 25% lump sum, this should be declared in Spain and would apply to the Spanish rules of 40% being tax exempt and the rest income taxable. You would therefore pay any tax owed in Spain.

Only the FIRST Lump Sum is tax exempt so it’s important to realise that and make sure you plan effectively.

Regular payments from your pension fall under income tax

From 2007 onwards there is NO tax exemption of this kind.

Top Tips For Your Pension Lump Sum/One Off
When taking your lump sum, take it in the year that is most tax efficient for you, such as when you have lower income from other sources.

Moving your pension outside the UK could give you more freedom, more choices and potentially less tax to pay in the long term (depending on your situation).

Source: Silvia Gabarró GM Tax Consultancy Barcelona