- There is a difference in the FCA advice requirements in relation to transfers and HMRC requirements on how the actual transfer takes place.
- Most members have a right to transfer their pension arrangements, however, there are a number of exceptions
- No tax relief is allowable on the funds transferred from one registered pension scheme to another registered pension scheme (a recognised transfer).
- A transfer from a registered pension scheme to a vehicle that is not a pension scheme, to a UK pension that is not a registered pension scheme, or to a non-UK scheme that is neither a registered pension scheme nor a qualifying recognised overseas pension scheme, would be taxed as an unauthorised payment.
- If a member wishes to transfer out of their scheme then the member, given certain conditions, must be given a cash equivalent of their rights.