QROPS | Qualified Recognised Overseas Pension Schemes
Anyone with a UK pension scheme who has moved overseas, or is planning to leave the UK can transfer their existing UK pension into a QROPS (Qualifying Recognised Overseas Pensions Scheme) which is allowed under UK expat tax rules. The financial benefits can be considerable if the transfer is planned correctly. Our free evaluation service conducted by authorised IFA’s will look at the pros and cons of transfering your UK pension. Please feel free to contact us without any obligation to discuss your particular circumstances.
“ Qualifying registered overseas pension schemes – Expats can now say goodbye to compulsory purchase of annuities and high taxes on their pensions by getting on board with what some financial experts are calling the next big thing in retirement savings – offshore pensions. „
Click Here for a Free UK Pension Healthcheck
Whatever your Situation our advisors can find you the most cost effective and tax efficient Qrops solution available on the market
Our advisor will establish if a Qrops is right for you and will search the market for the best product to meet your needs.
- Qrops do not require you to buy an annuity, your pension can be taken as a lump sum.
- Unlike a standard UK pension a Qrops can be passed on to your children or other beneficiaries with significant potential tax advantages.
- Tax planning opportunities for income, capital gains tax and UK Inheritance tax.
- Qrops do not need to be established in your country of residence. The Jurisdiction can be selected to give the maximum tax advantage.
- Diverse investment choices including the choice of base currency – £, € or US$
- With careful planning you can improve the growth, flexibility and financial security of your pension.
Generally Qrops allow for much more freedom in the types of investments held. Some Products allow self investment and management.
- There may be considerable benefits for expatriates who transfer UK pensions to a qrops. However qrops transfer is not suitable for all situations.
- A Qrops may be withdrawn as a lump sum there is no requirement to buy an annuity.
- Having your Pension fund transferred to your country of residence means payouts can be in your local currency. This reduces currency exchange risk.
- The UK currently has a maximum lifetime limit on pension contribution. With Qrops there is no upper limit.
- You have the freedom to control your own investments.
- You have greater flexibility to access the funds.
- You will have access to income and capital without UK tax deductions.
- Free from UK inheritance tax
The Benefits of QROPS can be Significant
There are significant benefits to being fully in control of your pension. If you are resident outside the UK you may be able to switch your pension to a qrops. qrops
have many advantages over UK pensions, you can invest in a more diverse type of assets and with a proper structure in place can make significant tax savings. qrops also have major advantages concerning inheritance tax planning.
One of the advantages of being a UK expat is that you can set up an offshore pension.
Click Here & Contact a Qrops Advisor Now
HM Revenue and Customs, has set up a registration process for overseas pension providers to allow the transfer of UK pension funds offshore. These schemes are refered to as QROPS. In reality QROPS is a registration process not a product.
HMRC allows the transfer of funds from a UK pension into one of these approved schemes. . The scheme must meet HMRC criteria for the benefits paid to the investor and also regulated in the country where the pension is established.
You can check if the scheme is a QROPS on the HMRC web site, new schemes are added and non compliant ones removed all the time.
The main differences between a UK Private pension and a QROPS scheme are:
- The rule that a pension investor has to buy an annuity with their pension pot by the age of 75 years old is removed.
- What remains of the pension forms part of the investors estate on their death, and can be passed on in their will.
- With specialist tax planning it may be possible to reduce the effect of inheritance tax.
- QROPS rules are more relaxed than those of a UK private pension.
- Some schemes will allow investments in a broad range of assets including property and foreign currencies
- After five-years, the pension provider has no reporting obligations to HMRC
- The expatriate pension holder can live in one country and take out a QROPS in another Jurisdiction .
Offshore pensions are a complex area, always seek out the best advice possible, don’t be afraid to get a second opinion. It is often better to pay for advice than get it free. If you break the five year rule could be an expensive mistake.
An offshore pension is a complex financial product – especially linked in with foreign currency fluctuation and inheritance tax rules.
Always consider taking best advice from a specialist QROPS advisor, and if you have a significant pension fund, this should tie in with relevant tax consultancy and estate planning.
Failing to do so could end up as an expensive mistake that could ruin your carefully laid retirement funds.