Qualifying Recognised Overseas Pension Schemes (QROPS)
Qualifying Recognised Overseas Pension Schemes (QROPS) were introduced in the UK Finance Act in April 2006. This now means that if you have UK pensions which are being deferred or in drawdown you are able to transfer them into a new overseas pension scheme which has been accepted as qualifying by HM Revenue & Customs in the UK.
QROPS is only of any benefit to you if you are currently an expatriate from the UK or you are planning to become an expatriate in the future.
Some of the main benefits of QROPS are –
- You are never forced into buying an annuity
- Your pension income will be paid to you gross
- After 5 complete and consecutive UK tax years of non-UK residency on your death your pension fund will cease to be liable to UK, charges of 55% (from April 2011) so you may be able to pass all of the remainder of your fund to your heirs
- Within your QROPS, your assets can be held and paid to you in a currency other than Sterling, so that you can remove the exchange rate risk and exchange rate costs on your pension
Our knowledge of the ever changing UK pension rules and options combined with our expertise on overseas taxation means that we can help you structure your pension and retirement benefits in a manner that minimises your taxes.
