QROPS Guernsey
Guernsey is very well known for being one of the world’s premier international finance centres and many QROPS providers operate from here. As well as the wide variety of advantages you will receive by transferring your pension into a QROPS, a qualifying recognised overseas pension scheme based in Guernsey can offer many tax free benefits if you pass over your UK pension into a QROPS in Guernsey.
A QROPS based in Guernsey will avoid inheritance tax and allow the pension holder to also pass the pension fund on to their heirs upon death which is something that is not possible under UK legislation. A tax free lump sum withdrawal of up to 30% also becomes available upon transfer of a pension into a Guernsey QROPS.
In order for a pension provider in Guernsey to obtain QROPS status, they must meet a number of HMRC QROPS rules that relate to when and how benefits can be taken. The provider must also comply with reporting requirements for five complete tax years after the pension fund holder has left the UK.
There are some QROPS which have rules where you must be resident in the country where the recognised pension scheme is located, others do not. In this case you can opt for a tax friendly jurisdiction such as Guernsey which has more flexible rules on how the benefits can be taken and invested.
There are a wide variety of pension schemes in the UK that can be transferred which include personal and occupational pension schemes. Pensions that are in draw down and protected pension rights can also be transferred.
Unfortunately, it is not possible to transfer your basic state pension or if you have already purchased an annuity. The same applies to most final salary schemes if you have already begun taking benefits.
For further information on QROPS transfers and for a qualified QROPS adviser to contact you, simply fill in your details in the contact a QROPS adviser page to receive free QROPS advice.
