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From GunGame5 Documentation
We have been consistently asked by our clients "What are QROPS?". They're a UK HMRC authorised scheme used for individuals who hold a UK pension plan and are considering or thinking about moving offshore. The QROPS, or Qualifying Registered Overseas Pension Scheme, is really a system whereby an individual moves their pension plan abroad in a scheme which have a number of financial advantages and provide greater control to the individual.
The main important things about QROPS consist of;
- Ability to control your pension plan in a more tax effective way
- Lower running charges
- Greater Investment Opportunities
- Currency volatility is removed
The principal negatives of QROPS;
A current HMRC authorised QROPS scheme can be removed off the authorised list without warning if the HMRC believes that that it does not are eligible laid down in UK regulations. In the example of Guernsey, 310 out of a total of 313 schemes were taken off in April.There is a potential that HMRC may behave retroactively against QROPS schemes which it has de-registered and the pension holder could be held responsible for taxes avoided. However this to date has not occurred.
HOW QROPS WORK?
QROPS are registered with HMRC if you happen to hold a British pension fund and are looking to move overseas and become exempt from UK taxes and laws.
The organisation that operates the QROPS scheme ought to be authorized by HMRC and ought to be certified and taxed within the country which it is operated from.
Once you have been a UK non-resident for over Ten years after establishing of your QROPS, which you have to be able to prove. Your QROPS Scheme can stop notifying HMRC of your withdrawals from your scheme and will no longer be subject to UK pension laws.
The moment the Ten year transition period has become completed you could then only be liable to the financial authorities where you are domiciled and where your QROPS Scheme is situated.
How to transfer your QROPS?
As a rule of thumb it should take around 2-3 months to transfer your pension plan into a QROPS. The operation is speeded up if you can in-cash your type of pension into cash. This is not necessary to do. One can find over almost 1000 HMRC authorized QROPS Schemes, so there needs to be a scheme which can satisfy your requirements.
Schemes are based from Australia and New Zealand to Malta and Gibraltar. It's worth noting that your QROPS does not need be held in the same country that you are domiciled. However there may be taxation matters you could possibly must take under consideration with holding it in another country.
After i die what takes place with my QROPS?
All funds which are left in your QROPS when you die will be handed onto your beneficiary's and fortunately are not subject to British inheritance taxes.
Crucial when establishing a QROPS is that you take specialist advice. There are many times when a QROPS isn't suitable, and lots of times when they are. Please contact us here at http://myqrops.net to learn more.
