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We are frequently asked by our customers "What are QROPS?". These are a UK HMRC recognized scheme used for individuals who hold a UK pension and are thinking about moving abroad. The QROPS, or Qualifying Registered Overseas Pension Scheme, is really a plan whereby a person moves their pension plan offshore in to a scheme that includes a number of financial gains and presents larger control to the individual.

The principal primary advantages of QROPS consist of;

- Ability to manage your pension in a more tax efficient way

- Lower running charges

- Significantly greater Investment Options

- Currency volatility is removed

The principal disadvantages of QROPS;

An existing HMRC accepted QROPS scheme can be taken off off the approved list without warning if the HMRC thinks that it does not qualify laid down in UK legal guidelines. When it comes to Guernsey, 310 out of a total of 313 schemes were taken out in April.There's the potential that HMRC may function retroactively against QROPS schemes which it has de-registered and the pension holder could possibly be held to blame for taxes avoided. Having said that this as of yet has not occurred.

HOW QROPS WORK?

QROPS are registered with HMRC for individuals who hold a UK pension fund and are looking to shift overseas and become exempt from UK taxes and regulations.

The company that operates the QROPS scheme needs to be authorised by HMRC and must be experienced and taxed inside country which it is operated from.

When you have been a UK non-resident for more than Ten years after setting up of your QROPS, which you have to 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.

After the Ten year transition period has been completed you will then only be liable to the financial regulators where you are domiciled and where your QROPS Scheme is located.

How to transfer your QROPS?

As a rule of thumb it should take around 2-3 months to transfer your pension plan into a QROPS. The procedure 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 authorized QROPS Schemes, so there must be a scheme which can meet your requirements.

Schemes are based from New zealand and australia to Malta and Gibraltar. It's important to note that your QROPS does not need be held in the same country that you are domiciled. However there can be taxation issues which you might have to take into account with holding it in another country.

When I die what takes place with my QROPS?

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

Important when establishing a QROPS is that you take professional advice. There are many situations a QROPS isn't suitable, and many times when they are. Please contact us here at http://myqrops.net for details.