QROPS Why You Should Consider

Here you will find information and facts why you should seek professional advice and remove your pension from the UK.
For many, the opportunity to invest their UK pensions abroad could not have come soon enough.

If you are no longer resident in the UK or are planning to move shortly and are frustrated by the rigidity of British pensions then an overseas pension scheme may well be for you.

What is QROPS?

QROPS (Qualifying Recognised Overseas Pension Scheme) are overseas schemes which HM Revenue & Customs (HMRC) allows UK pension schemes to be unlocked and transferred to authorised Non-UK pension schemes in order to experience greater tax benefits and freedom of investment choice among many more benefits listed below and are appropriate for people who are expatriates or are planning to be retired in another country than in the UK.



Is there compulsion for you to buy an annuity?

No, There is never any requirement to purchase an annuity. As long as on your death you are a non-UK resident and have been for more than five full and consecutive UK tax years, the remainder of the fund can be paid to your surviving spouse or family members free of UK death taxes.



0% Inheritance Tax

With inheritance tax set at zero on a QROPS, compared with as much as 82 percent in the UK, there are substantially more residual funds and it is much simpler to pass these onto the loved ones of your choice.



30% Tax Free Lump Sum

At the moment British citizens can take a lump sum of 25 percent from their scheme in the UK. Under QROPS this is set higher at 30 percent.



How can QROPS help avoid currency risk on your pension?

QROPS assets can be held and the pension paid out in any major currency rather than being restricted to GBP Sterling. This can remove currency risk and exchange costs if the pension currency is matched to the currency you are spending.



Lower Charges

Set up and running costs are generally significantly lower than in the UK and the fee structure is transparent.



Will I be able to alter my investments or keep them the same?

QROPS offer a wide range of investment options similar to UK Self Invested Personal Pensions (SIPPS), so you are able to invest your pension in a manner that meets your particular requirements selecting from a comprehensive range of flexible plans across a wide range of investment instruments that will help to structure your pension fund for your circumstances the way you want it.



Protection of Assets

Under certain QROPS, members can gain greater protection from creditors and claimants than is usually available in the UK.



Can I transfer into any overseas scheme?

Not all overseas schemes qualify as QROPS and HMRC only allows transfers into schemes that meet certain criteria. A QROPS listing on the HMRC web site, however, is no guarantee of HMRC’s approval, which can be withdrawn retrospectively, so careful advice is critical in the selection process.



Can all British pensions be transferred into a QROPS?

Deferred pensions, pensions in drawdown (even in payment) and protected rights can all be moved into a QROPS, but you cannot transfer an annuity or final salary scheme that is already in payment or the basic state pension.



Are there any income tax benefits?

The income from a QROPS will be paid to you gross if you have moved to a jurisdiction that permits this. You may be liable to tax in the country in which you are tax resident. In certain countries, income from QROPS can be structured so that you pay less tax (or in some cases, none) each year than on conventional UK pension income.





Expats and people planning on moving abroad permanently should obtain QROPS advice to find out the full list of benefits that are available by moving your current pension into a qualifying recognised overseas pension scheme. For further information on QROPS transfers simply fill in your details in the contact page and i will contact you to set up a free QROPS meeting.