The pension plans, we recommend and manage are established so that the underlying investments are not subject to tax; with careful planning the pension fund can be continued until retirement on a tax-free basis.
Qualifying Recognised Overseas Pension Schemes – QROPS
If you have previously worked in the UK and contributed to a UK company or private pension and have since become an expat or relocated out of the UK, a QROPS can provide a valuable alternative to a UK pension.
Individuals with UK pension rights, who wants less restriction, more control and a better return on their money, often, find that a QROPS is a great way to boost their pension funds.
Pensions are an intrinsic part of your overall financial plan, and it therefore makes sense to weigh up all of your options, especially if you’re planning to live or retire in a foreign country.
QROPS give international workers and expats access to enhanced tax advantages and increased flexibility – allowing them more freedom to control their investments
QROPS do not function within the same limitations as UK pensions; therefore if you do not intend to stay in the UK, there is no reason for your pension funds to do so.
The principal benefit in transferring a UK Pension to QROPS is that the pension fund can be used by the member during their lifetime; any unused assets within the scheme at the time of the death can then be passed on to the member’s estate or named beneficiaries.
Some benefits of QROPS include:
- No UK tax liability
- No need to purchase an annuity
- Investment flexibility
- No inheritance tax liability
- No minimum transfer threshold (depending on the QROPS)
- Consolidation of several UK pensions into one QROPS
- Taking up to 30% of the pension fund as a tax-free lump sum
- The choice to retire early (the pension can be accessed at the age of 55)
Please Contact Us for an independent review of your existing pension provisions, and to find out more about the options available to you.