QUALIFYING RECOGNISED OVERSEAS PENSION SCHEMES

QROPS - Are you a non UK resident or planning to become non resident?

As a UK ex-pat do you now live in or are you about to emigrate from the UK to countries such as: Spain, France, Italy, Canada, US, Israel, Singapore, Thailand, Malaysia, United Arab Emirates (Dubai) and China?

Are you looking for key upto date information on your options when considering transferring your pension scheme to an offshore provider in say Guernsey or New Zealand?

Are you looking for a UK registered and regulated IFA specialising in overseas pension transfers who can offer advice on the most upto date and innovative schemes currently available in the market place?

Transfers to for example, a Guernsey QROPS provider are available with a pension fund from as little as GBP 50,000.


WHAT ARE QUALIFYING RECOGNISED OVERSEAS PENSION SCHEMES OR QROPS

Her Majesty's Revenue and Customs (HMRC) permit UK pension rights to be transferred to a QROPS. The QROPS must behave in effect as if it were a UK scheme for those members who have been resident in the UK at any time in the previous five tax years.

The key attraction of a transfer to a QROPS lies in the fact that for those who are currently in the position of having been non UK resident for at least five tax years (or when they satisfy that condition) this requirement falls away.

After that time the pension fund becomes subject to the laws of the relevant overseas jurisdiction – and for example the UK requirement to purchase an annuity by age 75 (or be faced with the prospect of a possible 82% tax charge) no longer applies.

QROPS can be set up for ex UK residents as soon as they move abroad and become an "ex-pat" non resident of the UK (and intend to remain so over the long term).

TRANSFERRING UK PENSION RIGHTS TO A QROPS

QROPs may be used to receive transfer values from any UK registered pension scheme including protected rights funds.

Transfer values may be taken into a QROPS from UK arrangements (other than annuities and occupational pensions) even where benefits have been taken.

For example if you have an existing UK self-invested personal pension scheme and even where unsecured income is being drawn (generally referred to as “drawdown”) it may be beneficial to transfer to a QROPS where you are non-UK resident and intend to remain so over the long-term.

TAKING ADVICE

The transfer of pension rights from any UK registered pension scheme is not a matter to be taken lightly.

Where the transfer is from a UK occupational pension scheme any UK-based adviser advising on such a transfer must be suitably qualified and have the relevant permission granted by the Financial Services Authority.

Contact us for more information on a non obligation basis: finance@arbutus-business.com

WHAT QROPS ARE AVAILABLE

Countries in which QROPS options are based include Guernsey, New Zealand, Isle of Man and Hong Kong.

In May 2008 HMRC withdrew QROPS status from all Singapore based QROPS. This emphasises the importance of taking careful independent advice from industry experts who are in regular contact with HMRC to ensure that any transfers do not nor are likely to fall foul of HMRC regulations.

We are seeing new and innovative QROP Schemes coming to the market on a regular basis. These include:

Scaled down funds with as little as GBP 50,000 to transfer,

Cost effective funds suited to the GBP 250,000 to GBP 1 million plus.

A New Zealand based scheme may be of particular relevance to those who are looking to release capital from their fund.

We have access to arguably the largest and most upto date selection of QROPS suited to your needs

INVESTING THE FUNDS TRANSFERRED TO A QROPS

A wide range of investments are possible within a QROPS - and the possibilities become more or less unlimited once the QROPS member has been non resident for five complete tax years or more.

There is no limit to the size of funds that may be accumulated within a QROPS.

Transfer values from most UK registered pension schemes will be paid to the QROPS in cash. In other instances it may be possible to transfer existing scheme assets, but the additional costs associated with this would need to be taken account of.

On receipt, cash funds will be placed on deposit by the scheme administrators in an account designated for the member’s fund with a leading institution with a competitive rate of interest being applied.

Contact us for more information: finance@arbutus-business.com

TAKING BENEFITS - RETIREMENT AGE.

There is generally considerable flexibility in terms of the timing of taking benefits from a QROPS.

In most instances benefit can be taken at any time between the ages of 50 and 75, but it can be possible to access funds before or after these ages.

Contact us for more information: finance@arbutus-business.com

RETIREMENT AND DEATH BENEFITS

What follows is based upon the assumption that the QROPS member on taking benefit is not UK resident nor has been resident during the five tax years preceding the tax year in which benefit is taken.

Benefits may be taken from a QROPS in pension form with no particular limits on the amount of pension that may be taken. There is no obligation to buy an annuity from a life office and the amount of “income” required may be drawn from the fund.

This does not however preclude the possibility of withdrawing most or the entire fund in a single transaction. More information on this option is available on request.

In whatever form benefits are drawn from QROPS, there will be no deduction of taxation at source. Taxation will apply in accordance with the legislation governing the QROPS scheme members’ country of residence.

Following the death of a QROPS member any remaining fund may be subject to the discretionary disposal of the scheme trustees in accordance with the provisions of the scheme rules.

This will generally result in a disposal in lump sum form to beneficiaries nominated by the scheme member.

It may be possible for the residual fund following death to be paid by the QROPS to the funds of other members created, for example, for the benefit of other family members.

However, if you have transferred UK pension rights into a QROPS then in the event of death, where you have been a UK resident within the five full UK tax years preceding the date of your death, benefits paid will be subject to UK restrictions and UK taxation requirements.

Click here to read HMRC guidance on QROPS.



See out Frequently Asked Questions section for answers to many of the questions we are asked about QROPS by clicking here



Contact Information:

Robert Burns BA (Hons) FCCA
Managing Director
Arbutus Finance and Pensions

finance@arbutus-business.com

Tel: (From Spain) 902 88 90 20
Tel: (Outside UK) +34 965 790 918
Tel: (UK) +44 1793 554 762




Arbutus qrops