Expat Exchange Community
12 years ago
UK Pension release QROPS
12 years ago
Qualifying Recognised Overseas Pension Schemes - QROPS
It was announced in April 2006 that British ex-patriates would be able to move their pension benefits to a QROPS with the UK revenue’s approval.
QROPS (Qualifying Recognised Overseas Pension Schemes) was launched by the British Government as a way to make ex-patriate retirement easier for Britons. It effectively allows Brits to retire abroad while taking their pensions with them.
In simple terms, this means that anyone who now lives overseas, or is intending to leave the UK long-term, can transfer their existing pension plans into a QROPS. However, the tax-free income and withdrawals allowed within the first 5 years of being a non UK resident will depend on personal circumstances and the jurisdiction of the QROPS. After the 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).
Currently, the minimum retirement age of 55 will still normally apply before benefits can be taken. However, the QROPS can offer considerably more flexibility, tax benefits, greater income potential and investment freedom compared to a UK pension.
QROPS may be used to receive transfer values from UK registered pension schemes which can include Protected Rights funds. This may also apply to those already receiving benefits from a UK Self-Invested Personal Pension Scheme (SIPP).
Most of the QROPS schemes are not taxed at source, however the tax applicable to any income will depend upon where you are tax resident at the time.
Benefits of QROPS
We will help you find the best QROPS pension transfer solution for your needs. We believe that the reasons for transferring your UK pension into a QROPS outweigh the benefits by far than leaving it with your UK pension administrator, thus giving you the maximum benefits.
No need to EVER purchase an annuity
No UK tax charge upon death
Greater investment freedom
Can provide access to your pension fund
Leave all unused pension funds to your beneficiaries, free of tax at source
Take income from your pension in a much more efficient way
Take income and benefits in a currency of your choice
Onshore / offshore funds, fixed deposit rates, total diversification
May allow access to a greater lump sum after 5 years
Protection against possible future creditors. (Dependent on QROPS jurisdiction).
Greater confidentiality against ex spouses, business partners and creditors
It was announced in April 2006 that British ex-patriates would be able to move their pension benefits to a QROPS with the UK revenue’s approval.
QROPS (Qualifying Recognised Overseas Pension Schemes) was launched by the British Government as a way to make ex-patriate retirement easier for Britons. It effectively allows Brits to retire abroad while taking their pensions with them.
In simple terms, this means that anyone who now lives overseas, or is intending to leave the UK long-term, can transfer their existing pension plans into a QROPS. However, the tax-free income and withdrawals allowed within the first 5 years of being a non UK resident will depend on personal circumstances and the jurisdiction of the QROPS. After the 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).
Currently, the minimum retirement age of 55 will still normally apply before benefits can be taken. However, the QROPS can offer considerably more flexibility, tax benefits, greater income potential and investment freedom compared to a UK pension.
QROPS may be used to receive transfer values from UK registered pension schemes which can include Protected Rights funds. This may also apply to those already receiving benefits from a UK Self-Invested Personal Pension Scheme (SIPP).
Most of the QROPS schemes are not taxed at source, however the tax applicable to any income will depend upon where you are tax resident at the time.
Benefits of QROPS
We will help you find the best QROPS pension transfer solution for your needs. We believe that the reasons for transferring your UK pension into a QROPS outweigh the benefits by far than leaving it with your UK pension administrator, thus giving you the maximum benefits.
No need to EVER purchase an annuity
No UK tax charge upon death
Greater investment freedom
Can provide access to your pension fund
Leave all unused pension funds to your beneficiaries, free of tax at source
Take income from your pension in a much more efficient way
Take income and benefits in a currency of your choice
Onshore / offshore funds, fixed deposit rates, total diversification
May allow access to a greater lump sum after 5 years
Protection against possible future creditors. (Dependent on QROPS jurisdiction).
Greater confidentiality against ex spouses, business partners and creditors
