QROPS Isle of Man
From 6th April 2006, HM Revenue & Customs in the UK introduced new rules whereby UK pensions could be transferred to the Isle of Man by means of a QROPS vehicle.
QROPS stands for qualifying recognised overseas pension scheme and includes a wider range of options and benefits compared to the UK pension scheme alternative.
You may wonder why you would want to transfer your current pension scheme into an Isle of Man QROPS. Simply put, there are innumerable benefits that will become available to you by relocating your pension into an Isle of Man QROPS.
Some of the major advantages to be gained are:
- The ability to invest the balance in a much wider variety of investment options
- 30% of your fund could be withdrawn from 50 years of age
- When you die your fund can be passed over to who ever you choose without having to pay inheritance tax whereas a tax charge of up to 82.5% can apply to a UK pension.
- You can choose to receive your income in Euros or any other currency and therefore will not be subject to the exchange rate risk when you receive your pension in your country of residence such as Spain for example
It is wise to invest in the currency that you will be spending the money in. Therefore, if you are going to live in Spain and spend your money there it is advisable to invest in Euros and transfer your pension into a QROPS. This will then remove 2 major risks which are currency fluctuations and the worry of leaving your pension in sterling and hoping the exchange rate will improve.
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.
