QROPS - What Can I Do With My UK Pension? If you are a non UK resident with a UK pension fund did you know that you have the ability to "unlock" your UK pension money & release them to a HMRC approved offshore location such as Guernsey or Australia? Transfers are completed by QROPS or "Qualifying Recognized Abroad Pension Schemes." Benefits of Transferring UK Pension Rights Offshore:
Freedom to Control Investments - the possibilities become more or less countless & can include antiques, jewellery and works of art and in certain circumstances, residential property. Flexibility to access funds at any time between the ages of 50 & 75 with the potential to access the funds outside these ages. No requirement to buy an Annuity - under a UK technique a feasible tax charge of 82 percent is payable if an annuity is not taken by the age of 75. Access to income & capital without deduction of tax. Transfer of the fund to future generations on death. No deduction of tax at source. Taxation will apply in accordance with the legislation governing the QROPS technique member's country of residence.
All of the above advantages become feasible after your UK pension fund has been transferred to a QROPS Pension & you have been a non UK resident for complete tax years.
How do they work? Transfers are done by HM Revenue & Customs approved schemes called "QROPS" or "Qualifying Recognized Abroad Pension Schemes." A transfer can happen to an approved system as soon as you become a non UK resident & intend to stay so for the foreseeable future. HMRC maintain a list of approved schemes that is updated two times a month. An important safeguard is that if the proposed pension transfer is to an unapproved system the transfer cannot happen. For someone who has been a non UK resident for less than complete tax years the benefits provided under the new system will be similar to those provided under UK law. After that point in time everything changes.
Is it suitable for me? QROPS transfers tend to be suitable in the event you now live permanently abroad & have a UK pension pot in excess of ÂŁ50,000. Usually, this can include somebody with a fund that has been built up in a Company Technique (Final wage / defined benefit or defined contribution), Public Sector Schemes and those with Personal Pensions. Transfers are not obtainable for state pensions or to somebody who has began to take their pension as an annuity. However, they are obtainable to those who are "drawing down" income from their pension fund but have not secured an annuity. Taking Advice: The transfer of pension rights from any UK registered pension technique is not a matter to be taken lightly and specialist advice is essential. QROPS is designed to give an investor settled abroad similar tax benefits as he would get from a UK based Pension Scheme. For more details on how http://www.pensionfundsreleased.co.uk/ can help you with your pension investment Contact us on info@pensionfundsreleased.co.uk