QROPS Benefits

We have been frequently asked by our customers “What are QROPS?”. These are a UK HMRC authorized scheme used for individuals who hold a British pension and are thinking of moving abroad. The QROPS, or Qualifying Registered Overseas Pension Scheme, is a plan whereby an individual moves their pension plan abroad into a scheme that includes a range of financial benefits and offer greater control to the individual. The main benefits of QROPS consist of;

Ability to take control of your pension plan in a more tax effective way Lower running fees More significant Investment Opportunities Currency unpredictability is removed

The principal negatives of QROPS;

An existing HMRC authorised QROPS scheme can be removed off the recognized list without warning if the HMRC feels that it does not are eligible laid down in UK legislation. When it comes to Guernsey, 310 out from a total of 313 schemes ended up removed in April.

There is the potential that HMRC could act retroactively against QROPS schemes which it has de-registered and the pension holder might be held to blame for taxes avoided. Nevertheless this up to now has not occurred. HOW QROPS WORK?

QROPS are registered with HMRC for you if you hold a UK pension fund and are attempting to move abroad and become exempt from UK taxes and legislation.

The enterprise that operates the QROPS scheme ought to be authorized by HMRC and ought to be capable and taxed inside country which it is operated from.Once you've been a UK non-resident for over 10 years after setting up of your QROPS, which you should be able to prove. Your QROPS Scheme are able to stop notifying HMRC of your withdrawals from your scheme and will no longer be subject to UK pension laws.As soon as the Ten year transition period has been completed you may then only be liable to the financial authorities where you are domiciled and where your QROPS Scheme is located.

How to transfer your QROPS?

As a rule of thumb it will take around 2-3 months to transfer your pension into a QROPS. The operation is speeded up if you can in-cash your pension into cash. Nevertheless this is not critical to do. There are over almost 1000 HMRC approved QROPS Schemes, so there ought to be a scheme which can meet your requirements.

Schemes are based from Australia and New Zealand to Malta and Gibraltar. It’s important to note that your QROPS does not need take place in the same country that you are domiciled. However there could be taxation complications that you have to take into consideration with holding it in another country.

Once i die what takes place with my QROPS?

All funds which are left in your QROPS when you die will be handed onto your beneficiary’s and fortunately are not subject to British inheritance taxes.

Significant when establishing a QROPS is that you take specialist advice. There are many occasions when a QROPS isn’t suitable, many times when they are.