QROPS

People who live abroad often find that transferring their UK pension fund to an international scheme brings greater tax efficiency and benefits. There are many considerations and facts to consider before moving your pension to another plan. Our advisers understand the complexities and have the experience to advise on the right option for you.

So if you’re thinking of moving abroad, or already live outside the UK and would like to know more about how your pension can work for you have a read of our guide on QROPS, or get in touch by calling your local office or by emailing info@blacktowerfm.com

The very complex field of pensions is a specialist matter which requires the highest level of service and attention from experienced technicians, international pension actuaries and more importantly the latest technology.  Our partnership with PenTech Ltd provides our Consultants and Clients with this essential independent support together with direct access to PenTech's expertise gained after more than 37 years in the UK and International pensions profession as industry recognised specialists

A pdf brochure is also available by following this link

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QROPS

QROPS

A Qualifying Recognized Overseas Pension Scheme (QROPS) allows anyone with a UK registered pension who is living outside the UK, or is intending to leave the UK, to transfer their pension overseas, under HMRC’s QROPS Provisions.

A QROPS plan may not only be more tax effective than keeping your pension in the UK, but, it also allows for more flexible investment options including a wide scope of currencies, commodities and markets.

Many expatriates have taken advantage of the QROPS Provisions; in fact since it was launched in 2006 over 20,000 pensions have been transferred from the UK into QROPS arrangements. Figures released show that QROPS investors save approximately £1 million a day in taxes that would go to the HM Revenue and Customs if the same money was left in a UK Pension.

QROPS Benefits

Investments

QROPS schemes give investors who want more financial flexibility a choice of stock markets, assets and commodities that are not open to UK pension savers.

Currencies

QROPS investments can be made in most major currencies. Pension benefits are usually paid gross in the currency selected by the pension holder. This takes away currency exchange rate fluctuation problems that can devalue spending power on a fixed income.

Tax

A QROPS arrangement does not have to exist in the same tax jurisdiction as the pension holder, so a QROPS scheme can be based in a country where low taxes are beneficial to fund growth while the pension holder can live in any other country. The pension holder can move between countries without making further pension transfers.

Pension benefits are taxed as income in the country where the pension holder is resident for tax. Most QROPS offer up to 30% Pension Commencement Lump Sum.

No annuity or ASP purchase

Under recently amended UK legislation, the requirement to purchase a Compulsory Purchase Annuity with pension funds or an Alternatively Secured Pension at retirement has been removed.  However, the potential tax liability on the residual fund on death before the age of 75 for persons receiving Income Drawdown has increased from 35% to 55%

Leaving a QROPS to family and loved ones

Combining the structure of a QROPS arrangement means the pension fund does not die when the holder dies. The entire remaining fund can be passed on to family or loved ones. Currently if you die before 75 you will probably have a 55% tax charge before you can pass on the proceeds to your beneficiaries. The same tax liability now exists for persons over the age of 75.

No Lifetime Allowance (LTA) charge

QROPS arrangements are exempt from LTA charges and any penalties from breaching the threshold.