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Do you have UK Pensions? Nick Venn DipPFS, Private Client Adviser
QROPS are overseas pensions that can provide excellent retirement planning, providing the scheme remains within the HMRC strict rules. Having made the decision to reside overseas, you have no doubt left your UK Pensions with your previous employer or personal pension provider and it only normal to leave in situ until a little nearer your retirement date or age. You have the facility to consider a transfer of your pension benefits into a QROPS, especially if you have already moved outside the UK with the intention of living overseas for an indefinite time. Most forms of UK Pensions can be transferred into a QROPS, including Personal Pensions and preserved benefits from Company Pensions. It is important that your Adviser provides certain checks on these Schemes to ensure you are aware of any potential penalties upon transfer or guaranteed benefits that you may be giving up. You cannot transfer your State Pension. Most Schemes will pay income to you, gross of taxation, therefore you will be liable for income tax in your country of residence. The top three jurisdictions are currently Guernsey, New Zealand and Australia. Source: HMRC. Guernsey in my opinion, offers the most robust jurisdiction with competitive charging structures, trustees are well regulated by the Guernsey Financial Services Commission and has an excellent reputation for offshore investment. New Zealand has had a series of trustees that has
the ability to commute your pension into cash, although changes will undoubtedly come into force throughout 2012, following consultations and pension changes. The key benefits of a QROPS are: Retirement benefits – once you have been outside of the UK for five complete tax years, you can draw up to 30% tax free cash with a flexible income up to the GAD (Government Actuary Department) rate each Scheme year. Death – there is no taxation on death benefits payable from a majority of QROPS jurisdictions. Taxation in the UK can be as high as 55% in certain circumstances. Age – you can draw benefits from age 55, with prior access to benefits for that age group and younger individuals who satisfy the five tax year residency rule. It is important that you seek quality and qualified advice from professional independent financial advisers, who can select the most competitive charging structure, most suitable jurisdiction for you and build a successful investment portfolio for your pension assets. If you would more information, please contact me by phone or email: nick.venn@aesfinance.com
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