QROPS (Qualifying Recognised Overseas Pension Scheme)

Radical changes were made to UK Pension Legislation that provides a Major Opportunity for all Expats.
Any Expat, whether a British National or not, with a UK Frozen (or Active) Pension Scheme who now lives overseas or is planning to become am Expat, can now transfer their existing Pension Schemes into a QROPS (Qualifying Recognised Overseas Pension Scheme).
This Bonus allows a simple transfer of UK Pensions to a more Tax Friendly, Offshore Jurisdiction. The Financial and Tax Benefits can be enormous if the Pension Transfer is planned correctly.
Although you cannot take the Tax Free Benefits, Income and Lump Sum, unless you have been Non-UK Resident for Tax Purposes for 5 Years or more. By planning ahead you can improve the Offshore Tax Beneficial Investment Opportunities, have Maximum Flexibility and you will not have to purchase an Annuity. This allows you to take a Lump Sum upon the Pension Transfer and Tax Free Pension Income, depending on where you are residing at the time you take your income. Plus you can leave any unused Pension to your Beneficiaries.
The Legislation allows the following –

  • Maximum Portability – this allows maximum portability to offshore locations from any Frozen or Active Pension Scheme where the Pension Holder is now a non-resident in the UK.
  • Minimal Charges Maximum Growth – if a person is a UK Pension Holder and has more than one Pension; these Pensions can be consolidated into one simple QROPS Plan. Therefore Minimising Charges and Maximising the Growth Potential of the Plan.
  • Generational Planning – upon the demise of the Pension Holder, the entire residue of the Pension can be left to Beneficiaries, it does not return to the UK Treasury.
  • Total Control of Investments – the Pension Holder has total control over where the Pension Money is Invested. The invested Money grows Tax Free where as in the UK Pension Fund Dividends are now Taxed.
  • 25% Tax Free – the Pension Holder can take a Lump Sum of 25% at age 55 plus.

You can read more about QROPS on a unique FAQ page.
To find out more, please contact us.