The Government could be free to severely restrict how offshore pensions are used following the EU referendum result, AJ Bell said.

Qualifying Recognised Overseas Pension Schemes (QROPS) were created in April 2006 in response to EU freedom of movement legislation.

Although the rules were designed to allow people who moved overseas to transfer their pension into the country where they now reside, UK citizens can transfer their savings to a jurisdiction of their choosing – even if they don’t live there.

AJ Bell said that many move to one EU country but transfer their pension assets to another in order to minimise their tax bill – but this could be at risk from leaving the EU as it opens the possibility for the Government to consider restricting this.

AJ Bell senior analyst Tom Selby said: “It is in the Government’s interests to restrict QROPS in the wake of the Brexit vote. One of the primary reasons people transfer to a QROPS is to pay less tax than they would under UK rules. Placing restrictions on some transfers would mean more savers would leave their pensions in the UK, providing a welcome boost to Treasury coffers.

“Pension money that stays in the UK is potentially subject to a number of tax charges, including income tax and potentially lifetime allowance penalties. By shifting their pension overseas individuals can potentially pay little or no income tax at all on their fund.

“The new Chancellor will therefore be sorely tempted to adjust legislation in any way that encourages savers to draw their pension on these shores.”

Nigel Green, chief executive of deVere Group, recently said Brexit will fuel demand for UK pensions to be moved out of Britain. He predicted that demand for QROPS would “soar”.

Mr Green said: “We can expect expat numbers to increase. This is because it’s likely that over the next two years, whilst Britain is still a full member of the EU, those who are thinking about retiring to places like Spain and France will do so sooner rather than later. They will want to move whilst it is still easy to do so."

Richard Libberton, private wealth manager at Anderson Strathern Asset Management, disagreed that Brexit will fuel demand for UK pensions to be moved out of Britain.

He said: “I think the uncertainty of the current political climate, as the UK has to determine her relationships with its neighbours will put retirees off making major decisions such as emigrating and shifting their pensions out of the UK.

“Until reciprocal arrangements are ironed out in greater detail with each country, I don’t foresee a rush of pensioners heading for the door.”