QROPS Transfers
As of April 2006, QROPS Transfers came into operation offering a simplified and more efficient way for pensions to be moved from the UK into overseas pension schemes. All UK working citizens pay Compulsory National Insurance Contributions towards a State Pension but this is not transferable. Only private, company and public sector pensions can be transferred into a QROPS.
Pension transfers must be made to schemes that have QROPS status which is decided by HM Revenue & Custom, all of which are then added to a list which is updated twice a month. Any overseas pensions transfers made to non QROPS schemes are treated as unauthorised payments. Failure to transfer UK monies to a QROPS can result in a tax levy of up to 55%.
A QROPS transfer can occur as soon as you become a non UK resident, however the real benefits only kick in after you have been non resident for 5 full tax years. They are only really suitable for people not intending to return to the UK and with pension funds of at least £50,000, but for those who make the transition the benefits can be huge including 0% income tax, 0% inheritance tax, investment flexibility, no obligation to buy an annuity and no fund limitations.
With Qualifying Recognised Overseas Pensions Schemes however it is not a "one size fits all" scenario, as each scheme and jurisdiction has its own advantages and disadvantages. A specially trained QROPS adviser, regulated by the FSA, will be able to help you decide if a QROPS is right for you and if so which one matches up to your own individual needs. They will also know by checking the HMRC´s QROPS list and through their own experience and knowledge as to which QROPS providers abroad should be avoided.
For further information on QROPS transfers and QROPS rules or 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.
