QROPS Guide 07/31/2009
 This QROPS Guide will highlight some of the massive financial planning opportunities available to you in transferring your UK pension to a QROPS. Introduction This QROPS Guide intention is to provide you with all the answers and help that you have been looking for in deciding if a QROPS may be right for you! If you need more detailed information, analysis or further friendly advice in plain English then you can visit this link to download the compete QROPS Guide. If you have a UK pension and now reside away from the UK, or are planning to do so, you can transfer your UK pension overseas. The receiving pension is called a Qualifying Recognised Overseas Pensions Scheme or QROPS for short. The benefits that can be gained from moving your UK pension to QROPS can be substantial. With careful planning and professional advice you can dramatically improve your investment growth, financial security, tax liabilities and inheritance issues. This QROPS Guide is a look into the basics of QROPS, being a financial adviser for many years and has helped countless individuals and families move abroad, I am in a position to offer some advice. My golden rule is that you should only take professional advice from a fully FSA regulated company when dealing with UK pensions. The UK government and tax authorities are extremely strict when it comes to UK pension, and international advisors that do not hold FSA regulations run the risk of getting you a huge tax bill should things not be done correctly. QROPS Pensions in the UK have traditionally always consisted upon layer and layer of rules, regulations and restrictions. Firstly the government do not want the pensioner to blow all their money, so restrictions are set in place, secondly the government want a slice of the pie and they take income tax from your annuity, and thirdly, they want all the remaining money when you die. It is therefore obvious why someone not living in the UK would want to take their hard earned pension out of the UK system. April 2006 the British government lifted restrictions on transferring UK pension overseas and QROPS was established. This was also known as “A” Day. A QROPS is a type of pension scheme that is based outside of the UK and is recognised by the UK HMRC as a qualifying pension scheme to accept UK pension transfers. It also must be: · A pension scheme fully regulated by the country it resides governing bodies? · A recognised pension schemes that is subject to the tax laws in that jurisdiction Up until you have been away from the UK for 5 years, your Qrops pension will still be classed as a UK pension and fall under the same rules as the UK laws. The real benefits kick in once you pass the 5 year mark. After you have been away for more the 5 years, the Qrops scheme does not have to report back to the HMRC. This means that any benefits taken fall under the tax rulings of the jurisdiction the Qrops is held. Therefore, if the Qrops is in a tax efficient country such as Guernsey, you will pay zero tax on your benefits to the Guernsey tax man. Remember, the 5 year countdown starts the moment YOU leave the UK and not your pension. In other words, if you have a UK pension, and you have been away from the UK for 5 years or more, you can transfer your UK pension into a Qrops and start benefiting straight instantly. Qrops solutions can be all different shapes and sizes. A Qrops solution should be built around your requirements by a professional Qrops adviser. Not all schemes suit everyone, so a tailor made Qrops solution, with the correct tax advice etc is what you should demand. The HMRC have compiled a PDF containing a list of all the Qrops schemes in all the jurisdictions around the world. The HMRC do make a note that the list is not a compilation of recommended schemes, but simple a list of schemes that have Qrops status. Many of the schemes may no longer be a recognised Qrops, so it is important that professional advice is taken to make sure a scheme is still active. Benefits Here are some of the great benefits that a QROPS can offer: · No requirement to buy an annuity EVER · No requirement to pay the UK tax charge upon death. · 100% of your Fund is passed on to your beneficiary when you die · Far greater investment flexibility and freedom · 25% tax free lump sum withdrawal. Possibly higher · Tax efficient benefits and income withdrawals · Benefits can be taken in the currency which you choose · Protection of your fund from potential creditors. · Greater confidentiality. The benefits of being in control of your pension fund are immense for those living abroad. You can benefit from being able to invest into a more diversified range of asset classes. Now that you do not have to buy an annuity ever, either when you die or when your spouse dies, your pension fund does not die along with you. A Qrops with proper planning will allow you to pass on 100% of your hard earned pension to your beneficiaries, more quickly, easily and more tax efficient. Another QROPS Guide can be found by following the link. We recommend reading as many QROPS Guide as possible to get a full understanding. Visit the link at the end to download the complete QROPS Guide |
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