Many British expats who are resident in the UAE will have a pension back in the UK. It can be difficult to keep track of this, especially if you have multiple pensions from different employers.
Transferring them all into one plan, such as a SIPP, makes your life easier by having all your pension savings in one place. There can also be significant cost savings by transferring multiple pensions into one plan.
If you have already done this using a financial adviser in Dubai or Abu Dhabi, you may find that the pension you have has much higher charges than is really necessary.
➤ Find out how MyExpatSIPP enables non-UK residents to manage their own UK pension without an Adviser
Tax on UK Pensions in the UAE
You can get up to 25% of your UK pension paid as a tax free pension lump sum. The remaining 75% is treated as income and can also be paid as a lump sum or a regular payments.
The double taxation agreement between the UK and the UAE states that pensions paid from the UK to a resident of the UAE, will be subject to tax only in the UAE.
This means that any withdrawals from MyExpatSIPP can be paid without any tax deducted in the UK.
As the UAE does not apply income tax to personal income, if you are resident in the UAE, you will not have to pay any tax on your MyExpatSIPP withdrawals.
You will need to obtain a tax residence certificate from the UAE Ministry of Finance which we can assist with.
No QROPS in UAE
If you want to transfer your UK pension to a pension scheme in the UAE, the receiving pension scheme needs to have QROPS status, which is granted by HMRC in the UK.
There are currently no pension schemes in the UAE that have QROPS status so therefore, you’re not able to transfer your UK pension to the UAE.
If you have already transferred your pension to a QROPS (probably through a financial adviser with high charges), you are still normally able to transfer a QROPS to a SIPP. If you contact us we’ll be able to let you know if you’re able to transfer.
Do I need a financial adviser to open a SIPP
There is no requirement to use a financial adviser to set up a SIPP. The MyExpatSIPP is designed especially for non-UK residents, with simple and transparent fees, that allows you to manage your UK pension online without having to use a financial adviser.
There is a range of low cost ready-made investment options so you don’t need to be a financial expert to be able to take control of your own pension.
We will guide you through the process of drawing your pension when you reach retirement, and assist you with completing the necessary HMRC tax forms so it can be paid tax free.
Complete our short online sign up and transfer your pensions into one, easy to manage online plan.
Please contact us if you have any questions.