QROPS And Pension Transfer

What is QROPS and what does it mean?

QROPSQualifying Recognised Overseas Pension Scheme

A QROPS plan allows you to transfer your existing UK pension arrangement outside of the UK in line with changes to the law made in 2006. This scheme will be often be based in another international jurisdiction which has been pre-approved by the UK HMRC and as such is fully compliant due to compliance with stringent legislation as laid out by the UK government; giving you any number of advantages that you wouldn’t of had before…

DID YOU KNOW: When you die your UK pension forms part of your estate and will be taxed at a rate of 55%!

Who is eligible for a QROPS scheme?

In short, people with a UK private or work pension who are no longer resident in the UK, with no intention to return for the medium to long-term and who has not lived in the UK for the past 5 years. In terms of benefits, transfer candidates should have upward of 25,000 GBP in commutable benefits in their pensions to be eligible to transfer.

DID YOU KNOW: Since it began in 2006, QROPS has received over £1.3bn in transfers according to the Office for National Statistics

What are the benefits of a QROPS transer?

The benefits are numerous and to what extent you benefit from each depends on your personal circumstances. In summary:

  • At age 75 there is no need to purchase an annuity. Your pension doesn’t die with you.
  • There is usually a wide choice of assets available. Onshore and offshore funds.
  • Improved returns on the investment.
  • You can pass on all funds remaining at death to your family. No IHT liability.
  • Tax-free growth of funds both before and after retirement.
  • Take income in the currency of your choice.
  • Protection against creditors.
  • Tax-free lump-sum up to 30% of fund value.
  • Consolidate several UK pensions into a single QROPS.

1-in-3 of the people we consult about a potential QROPS transfer are eligible and are able to start to access the benefits of a transfer as soon as 3 months thereafter

How do I transfer my UK pension to a recognised and HMRC compliant scheme?

Seeing as there are currently tens of reputable QROPS providers based in fully HMRC-compliant financial centers the menu has become more populated in recent years. Fully understanding your circumstances and your objectives will enable us to make a comprehensive and accurate recommendation.  Send us a mail over on our Contact page to arrange a complimentary initial consultation free of charge.