PastorBurmeister517
From GunGame5 Documentation
"What are QROPS? QROPS stands for Qualifying Recognised Offshore Pension Schemes as identified by the Her Majesty’s Revenue and Customs (HMRC). They came into effect within the pension simplification principles of April 6 2006. The intention of this area of the regulations was to permit a Britain pension plan holder to move their funds to another country after they retire to another QROPS jurisdiction.
So who should look at a transfer to a QROPS?
A person with a UK pension plan who is either hoping to move offshore or perhaps already going to move overseas no matter if your pension is presently in payment or not. On top of that those expatriates who have built up UK pension benefits could also consider a QROPS transfer.
What are the important things about this kind of transfer? This list is by no means inclusive however the most popular reasons are;
1. To own your pension plan paid in the same currency that you just live in so to stay away from the erosion of your earnings as currency prices change.
2. Ability to avoid UK income tax on your pension income that, depending on your country of residence would mean you have to pay a lower rate of tax and thus get more money.
3. To never need or be forced to buy an annuity, which means you can acquire your pension income as the way you see fit.
4. To be able to pass on your remaining pension plan fund to your beloved ones on your death. Instead of paying 55% in tax to the UK Government.
5. More significant investment choice and adaptability which means you’re able to increase your fund growth.
Who should you entrust your money with?You should look into 3 key points as part of your own due diligence;
1. Make sure you are using an agency who has experience in the current market.
2. Ensure that your consultant does a full transfer analysis, taking into consideration the advantages and disadvantages of a transfer including charges, jurisdictions and tax concerns.
3. Due to the advanced nature be sure the consultants are qualified to the industry standard to QCF Level 4. Anyone without these certification won't be doing you justice. There are plenty of QROPS jurisdictions where you're capable of finding a HMRC authorised plan, including Malta, Jersey and the Isle of Man. Having said that there are a lot of rules which were brought in during April 2012 by the UK Government who has had a severe affect on the amount of schemes which qualify under the new HMRC rules.
HMRC were feeling that although numerous schemes were being meeting with the letter of the legislations however they weren't in the spirit of the law. Guernsey schemes happen to be especially horribly hit as schemes registered up until April 2012 allowed non-residents to pay no taxes on the policies while residents were required to pay taxes. This is in contravention of the new rules and consequently 310 out of the 313 rules have been taken off the permitted list.For more resources on QROPS as well as the ongoing alterations to the schemes please contact us at MyQROPS.net.
