QROPS & UK Pension Transfers
We can help with unbiased information that allows you to make informed decisions about UK Pension Transfers. It doesn’t matter to us whether you have been living abroad for a day or a decade.
Over the course of your working life you may have had the opportunity to work in one or more countries. You will have experienced different cultures. You may have even found a place that has captivated you to such an extent that you have decided to build your life there. Or perhaps you are a foreign national that lived and worked in the United Kingdom with a private UK pension, and have decided to return home. Whatever your unique personal circumstances may be you should consider the benefits of transferring your UK pension into a Qualifying Recognised Overseas Pension Scheme (QROPS).
In April 2006, it was announced that anyone with a UK personal or occupational pension scheme who has left or, intend to leave the UK to become non-resident for tax purposes, may transfer their pension qualify for a QROPS.
QROPS stands for Qualifying Recognised Overseas Pension Scheme that has met the requirements of the HMRC and allows individuals to transfer their UK accrued pension into another jurisdiction when they reside abroad.
Who are QROPS for?
Anyone with a UK personal and/or occupational pension scheme with at least £50,000+ invested and who has either left or, is planning to leave the UK in the next 12 months.
If you fall into the above category you have the opportunity to maximise your pension’s growth and income potential. You can avoid the limitations of a UK pension scheme and the UK lifetime allowance.
Top Five Benefits of a QROPS
No UK tax payable on pension income
Transferring your pension out of the UK to a QROPS means that your income will no longer be UK taxable. You can avoid paying UK tax of up to 45 per cent on your pension income. With a QROPS it may be possible to pay no tax depending on your country of residence.
No tax on death
Although UK rules have changed, your beneficiaries will still have to pay tax at their marginal rate if you die over the age of 75. QROPS have no tax on death at any age.
No lifetime allowance
Currently in the UK the lifetime allowance is 1 million GBP. QROPS have no lifetime allowance so your pension can grow to any size without a tax charge.
Higher lump sum
A 30 per cent lump sum can be taken from a QROPS. Generally speaking, only 25 per cent can be taken tax free in the UK. This will be applicable for anyone who has been non-UK resident for more than five years.
Currency and investment options
A QROPS gives you the ability to hold and invest the pension fund in any currency. A UK scheme will generally be restricted to GBP. In a QROPS some investment options may be available that would not be available in a UK scheme.
Forth Capitals QROPS Advice
There are a number of QROPS providers and options available to those of you who wish to transfer pensions. However sufficient due diligence and care must be taken when considering where to invest your pension funds. Transferring the funds out of the UK is only the start. Once it has been transferred into an offshore QROPS, you have further decisons to make in terms of how the funds will be invested moving forward.
If you speak to a Forth Capital adviser, you are guaranteed to receive impartial advice with no obligation on your part. Confidentiality is always assured. We can offer you the best advice for your unique situation and not just tell you about the benefits. We will also uncover all potential pitfalls you should consider regarding QROPS.
As well advising on UK Pension Transfers, our team can help you with all areas of your financial plans. In turn, we can help you achieve your financial goals. This makes us the perfect choice for you to discuss your needs.
You Can Get a free Review and UK Pension Transfers Guide that will answer the following questions
- What other taxes can I save?
- How can I pass 100% onto my loved ones?
- Can I take investment control of my pension funds?
- What types of pensions can I transfer?
- How will the 2014 Lifetime Allowance reduction affect me?
- How will the future government policy pension changes affect me?
What happens next?
Click here or on the green icon to the right of the screen and fill in the online form. A member of our team will then contact you to discuss your situation and objectives. Our team will then analyse your pensions and help you decide on whether QROPS is correct for you.