Brexit FAQs

Tax and charges

• Will my pension be taxed differently if I move to the EU?

  If you take income from your HL SIPP, UK tax will normally be paid automatically.

  However, if you also pay tax in your country of residence you might be able to claim some of the tax back – if the country you live in has a “double taxation agreement” with the UK. Non-UK residents will need to claim the Personal Allowance by completing HMRC’s R43 form.

  If you receive a UK State Pension, it’ll continue to be paid to you without any tax deducted. You’ll need to report it on your UK tax return. If you pay tax on your State Pension both in the UK and in your country of residence, you can usually reclaim some of this tax.

  If you receive pension income from another source, you should contact your provider to confirm how this income is taxed. Certain public sector pension schemes will always be taxable in the UK.

  Any pension commencement lump sum (PCLS) withdrawn from your SIPP will continue to be exempt from UK tax. This isn’t affected by the UK leaving the EU.

  See below for UK government information:

  • UK income abroad taxed twice
  • UK income abroad personal allowance
  • State pension if you retire abroad
  • Pension benefits for EEA and swiss citizens in the UK
• Will there be any changes to the tax I pay on income/capital gains?

  Any capital gains within your ISA or SIPP will continue to be exempt from UK tax. This isn’t affected by the UK leaving the EU.

  If you live outside the UK, you’ll need to ask for local advice on how any income or gains generated in the UK will be taxed in your country of residence.

  Any income (from dividends or interest) within your HL account will continue to be paid gross (before tax), with no UK tax deducted.

  See below for UK government information:

  • Non-UK residents income tax
  • Non-UK residents capital gains tax
• Are there any changes to the withholding tax I pay?

  If you hold non-UK investments, withholding tax may be deducted from dividends or interest before they are paid to you. In some cases, you may be able to reclaim all or part of the withholding tax paid. You will need to contact the relevant tax authorities to determine their requirements as these may vary from country to country.

  EU member states do not charge withholding taxes on investments held by residents of other EU member states. Therefore, during the transition period, withholding taxes would not have applied to UK resident investors holding investments in another EU country. From 1st January 2021, the amount of withholding tax deducted (if any) will depend on the agreement between the UK and the country in which your investment is held.

Cash, income and withdrawals

• Can I make withdrawals from my HL account(s) into a UK bank account if I reside in the EEA/EU?

  Yes. You’ll still be able to withdraw to your UK Bank account.

  You should check with your bank if anything is changing in relation to your UK based bank account.

• Can I make withdrawals from HL products into an overseas bank account if I reside in the EEA/EU?

  No. We can only pay to a UK based account. If you are unable to retain your existing UK account and are unable to open a different UK bank account, please contact our helpdesk for support.

• Will your charges change for overseas clients?

  No. We do not have any plans to change our charges after the Brexit transition period ends.

• Are my cash/investments still safe?

  Please see our page on the safety of your investments here.

• What will happen to my dividends as an EU resident?

  Dividend payments will be handled as normal – we’ll follow your current income instructions.

  However, if you haven’t already instructed your dividends to be reinvested, you won’t be able to select this option moving forward.

• Do you hold clients’ money with any non-UK banks?

  All client money is held by banks who have a UK banking license, although some have non-UK bank owners.

Your pension and retirement

• Can I change the percentage (%) contribution I make to my pension?

  Only if you are a member of the Group SIPP.

  You’ll be able to change the percentage contribution to an HL Group SIPP in the same way you do now.

• Can I manage my pension in the same way if I move to the EU?

  You won’t be able to buy UK authorised funds.

  This is different if you:

  • have an HL Group SIPP
  • you’re transferring investments,
  • or if you make monthly payments and investment instructions into your SIPP Fund and Share Account or Group SIPP.
• Can I transfer other pensions into my SIPP while I am in the EU?

  Yes. You can transfer a UK pension to your existing HL SIPP but you will not be able to invest this into a UK Authorised fund. If you transfer ‘in specie’ you can keep any UK Authorised funds that you already held.

  You cannot open a new SIPP account if you are a non-UK resident, unless this is for the Group SIPP i.e. a company pension scheme.

• I’m planning to retire in the EU in the next few years. Will I be impacted after 31 Dec 2020?

  This would depend on how you use your pension as part of your retirement plans.

  If you already hold a SIPP or Group SIPP with HL you can open an HL Drawdown account. However, there will be restrictions on what investments you can buy after you have opened the account and you must have a UK Bank Account into which income payments can be paid.

  If you intend to take your pension as a Lump Sum, UK income tax may be deducted. If you are not subject to UK income tax you may be able to reclaim this. The payment may also be subject to tax in the country you are resident.

  If you intend on taking an annuity, some annuity providers are no longer taking new applications from non-UK residents or are applying restrictions. The table below outlines further information:

  Provider	Can they pay to a Euro denominated bank account?	Is there a cost for doing so?	What is the process for changing bank account?
  Scottish Widows	Yes. All payments are done in sterling. Citibank will apply conversions upon receipt.	Waiting for confirmation.	Request from client confirmed in writing.
  Just	New clients must be a UK resident with UK bank account. Existing clients – overseas payments are made using Citibank.	£2.74 per transaction. Takes on average 3 working days.
  Legal & General	Yes. New business can only be accepted for UK residents to a UK bank account in Sterling. Citibank arrange any conversions. Existing clients are able to change to an overseas bank account.	£2.85 per income payment.	Client would need to complete a TAPS mandate form. May refer for additional checking if we’re requested to change to a bank account in a country with poor AML controls.
  Canada Life	Yes, but it will be a sterling payment converted into euros.	No charge.	Formal confirmation in written format, with AML. A new bank statement with the existing name and address assist.
  Aviva	New clients must be a UK resident. If the customer is existing and is moving overseas then Aviva will facilitate overseas payments. £2.74 per income payment Overseas mandate form from the client with AML checks.	£2.74 per income payment.	Overseas mandate form from the client with AML checks.
  Hodge	New applicants must be UK resident with a UK bank account. For existing annuitants living overseas (there are c.50 in total), Hodge have contacted to inform them of the potential issue and to discuss their situation with their bank. Hodge are looking to develop the ability to make overseas payments in the next 3 months. Costs are to be confirmed Hodge don’t envisage any additional diligence in respect of switching bank accounts other than confirmation that the bank account is held in the name of the annuitant.	Costs are to be confirmed	Hodge don’t envisage any additional diligence in respect of switching bank accounts other than confirmation that the bank account is held in the name of the annuitant.

• Will I still get my State Pension if I retire in the EU?

  Yes. The State Pension can be paid into a bank account in the UK or overseas, and you will receive the payments in your local currency.

  This isn’t affected by the UK leaving the EU.

• Will my State Pension still increase with inflation if I retire in the EU?

  If you moved to the EEA or Switzerland before 1st January 2021 you will continue to receive an increase to your State Pension income every year.

  If you move to the EEA or Switzerland from 1st January 2021 you can still claim your State Pension but it may not increase every year. Whether the State Pension is uprated or not will depend on the outcome of negotiations between the UK government and the EU.

  This is affected by the UK leaving the EU.

• I live in the EU but work in the UK. How is my pension with you, and the services you provide, affected?

  Being an EEA resident, there will be restrictions on what investments you can hold.

  If you have a SIPP with us, you’ll need UK Relevant Earnings to make a Relief at Source contribution.

• Can my drawdown payments continue into a UK bank account?

  Yes. We’ll pay your drawdown payments as normal.

  We recommend speaking with your bank to understand if anything is changing in relation to your UK based bank account.

• Can my drawdown payments be made into an overseas bank account?

  No. We can only pay to a UK based account.

  With the UK’s transition period with the EU ending on 31 December, we understand some banks are closing UK accounts for people living in certain countries outside the UK. We believe this may include Lloyds, Barclays and Halifax, but not Santander and HSBC at this stage. For more details, you might find this information from UK Finance useful.

  To update HL with your nominated bank account, please login to your online account and go to ‘Account Settings’ or contact us on 0117 980 9926.

• Can I buy a new annuity as a non-UK resident?

  No. Annuity providers aren’t accepting any new business from non-UK residents.

More information

• What are HL’s views on Brexit?

  We don't take sides on referendums and elections. We are not political. We're focused on doing the best we can for our clients in whatever climate prevails.

• How will you keep me updated if anything changes in relation to my account because of Brexit?

  We have identified clients who have addresses located in the EEA and will be contacting these by e-mail with updates. It is important therefore that you keep us updated with any changes to your address and/or e-mail address

• Where can I find out more information? What level of advice can you give me?

  If you’d like financial advice, you’ll need to contact an adviser registered in the country where you live. Unfortunately, we won’t be able to give you advice if you’re living outside of the UK.

• Do I have to let you know you if I decide to move to the EU?

  Yes. It’s important that you keep us up to date with your correct contact details.

• The EEA includes EU countries and Iceland, Liechtenstein and Norway.
• EU Countries are: Austria, Belgium, Bulgaria, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxemburg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden