The Finance Bill 2017 includes proposals which will in certain circumstances impose a 25% exit tax on the transfer of UK pensions to offshore pension funds. Although the charge will only apply to funds outside the EU/EEA, the provisions will still engage the EU right of the free movement of capital. The imposition of an exit tax in this way has long been an area the CJEU has considered likely to offend EU law. It is interesting, however, with the impending Brexit negotiations that the UK chose to impose the tax only on transfers to non-member states.
