I’m thinking of opening a FT SIPP account because of the tax relief and self-invested nature of the account. I’m just not sure if it’s beneficial long-term if I move abroad. I don’t mind paying tax, but I do mind if it results in being more than the tax relief
Would Freetrade need to close the account if I ever decide to permanently move to an EU country? (this event seems to trigger a 55% tax bill as I’m forced to take the money out before the minimum pension age). This would rule out a SIPP for me.
If FT allows the SIPP to remain open until I can withdraw, would I just be paying the income tax of the EU country I’m tax-resident in? (based on the double taxation tax treaty)
From what I read online, it’s advised to move the UK SIPP to a QROPS Qualifying Recognised Overseas Pensions Scheme to avoid additional taxes. Does anyone know what these are as I would expect any UK taxes to be reclaimable because of the tax treaty?
I assume the QROPS will likely not be a self-invested scheme like the SIPP which is one of the benefits for me.
(I’m not too bothered about GBP/EUR fluctuations as my investments would dictate the currency risk, not the account currency.)