Qualifying Recognised Overseas Pension Schemes – QROPS
Back in April 2006 QROPS, (Qualifying Recognised Overseas Pension Schemes) was launched by the British Government. This legislation allowed British ex-patriates to move their pension benefits to a QROPS with the UK revenue’s approval.
Basically this means that anyone who now lives out of UK jurisdiction, or is intending to leave the UK long-term, can move their existing pension plans into a QROPS. Depending on the jurisdiction of the QROPS and on personal circumstances, the tax-free income and withdrawals allowed within the first 5 years of being a non UK resident will vary. Past the 5 year mark (meaning if you have been living out of the UK for longer than 5 years), the pension fund will become subject to the laws of the relevant overseas jurisdiction and the need to purchase an annuity by age 75 no longer applies(age 77 following the Emergency Budget).
Why would you want to do a QROPS? What are the benefits?
• Depending on the case QROPS can provide up to 100% access to your pension fund!
• 100% Protection from the possible disastrous management and taxation they may be currently under
• Upon the unfortunate event of death there is No UK tax charge
• Freedom to invest your hard earned money where you would like
• You NEVER need to buy an annuity
• Your spouse, children or other beneficiaries can have access to all unused pension funds, free of tax at source
• Have access to income from your own pension in a beneficial way
• Have access to your pension in the currency that you prefer
• Split your funds to onshore/ offshore funds, as well as enjoy fixed deposit rates and be able to reap the benefits of diversification
• Protection against possible future creditors. ( bankruptcy, divorce …)
• Confidentiality against ex spouses, business partners and creditors
