Correspondence: Sue Tye, , Baker & McKenzie LLP, 100 New Bridge Street, London EC4V 6JA, UK. Tel: +44 020 7919 1178; Fax: +44 020 7919 1999; E-mail: sue.tye@bakernet.com

¹are associates in the pensions department of the London office of the Global Law Firm Baker & McKenzie. They advise trustees and employers on the English legal aspects of pension arrangements, including on the implications of the tax simplification changes introduced by the Finance Act 2004 and the cross-border and international aspects of pension provision.

Received 18 April 2007; Revised 18 April 2007.

Abstract

The Finance Act 2004 (the 'Act') set the parameters for a number of pension reforms, which finally came into full effect on 6th April 2006. Although the Act has simplified certain aspects of pension provision for the majority of UK employees, for other groups, such as overseas employees, the rules have become more complicated. This paper considers how the new regime affects, first, UK employees working abroad who are members of a UK-registered pension scheme and, secondly, UK employees in foreign plans, looking in each case at tax relief and allowances for the employer and for members (including the new lifetime allowance). It also considers the transfer of rights between arrangements.