The full Budget statement saw a further tax clampdown on overseas pensions, which it is believed could help stop pension scammers.
Stuart Paton Evans, retirement propositions director at Scottish Widows, said: “The introduction of a 25% tax charge on transfers of UK pensions into Qualifying Recognised Overseas Pension Schemes (QROPS) will make them less appealing for savers wishing to avoid UK taxation.
“There will be exemptions to allow pensioners with a genuine need to do this tax-free, particularly where the individual and pension scheme are situated in the European Economic area, the saver is moving to the country where the provider operates, or the transfer is to an occupational scheme sponsored by the individual’s employer.
“This continues the tax clampdown on overseas pensions that was introduced in the Autumn Statement in 2016 and could also help reduce the opportunity for pensions scammers who have looked to utilise QROPS to scam pensioners of their savings.”
Stewart Davies, group CEO of Momentum Pensions, said: “We are extremely concerned about today’s surprise announcement which is, in all but name, a tax on geographically mobile people who are assiduously planning for their future and providing for their retirement.
“The fact it will come into play so quickly is concerning as this will leave many advisers unprepared and uncertain about what to advise – which is as far from the ideal as you can get in a pensions sector which should be encouraging transparency and clarity in processes. We are crunching the numbers as we speak and will be in touch with our adviser partners shortly to help them make sense of today’s development.”