An HMRC-recognised QROPS is open to anyone who has a transferable UK pension fund.
If you fit into the following criteria, a QROPS pension could be ideal for you.
Which pension schemes can be transferred in to a QROPS?
Examples of potentially transferable UK registered pension schemes include:
It is advisable to seek specific QROPS advice when considering a transfer into a QROPS, as each of the listed schemes have specific benefits and features which need to be taken into account. Please contact us to seek further advice.
Why should I choose a QROPS?
A QROPS pension offers a wide range of benefits if you currently live outside the UK or intend to leave the UK in the future.
However, a QROPS pension is not for everyone, so please consider the following guidelines to see if you might be eligible for a QROPS.
How do I know that it is a legitimate scheme?
All QROPS providers will have a letter from HMRC confirming their QROPS recognition number. Furthermore:
What is the minimum transfer?
The minimum transfer value is £40,000.
There are no limits on the transfer value, except UK taxation may apply on transfers over £1.5 million (£1.25million from 2014).
What will happen if I return to the UK?
Your QROPS provider will continue to annually report any payments made from the QROPS to HMRC for a period of 10 years from the date the QROPS was set up. However, there are no major disadvantages of a QROPS in the UK and there can be some advantages of holding a QROPS whilst UK resident, compared to holding a UK pension. A QROPS mirrors UK Pensions legislation so will be subject to UK income tax but on 90% of the income only.
Should a death benefit payment be made during the 5 year period of non UK residency, then the QROPS will report the payment to HMRC in respect of the deceased member and tax liabilities could occur. Should death of the member happen after being a non-UK resident for five years, UK taxation does not apply and depending on any local law, the remaining funds should be paid to your beneficiaries.
Following a member's death the residual value of the QROPS is available to the named beneficiaries. Effective planning is important to ensure the benefits go to who the member intends.
In order to provide you with the latest information on QROPS, we have assumed that you understand your current UK pension arrangement. However, should you require more information on your pension fund, please contact us today.
We are here to answer your questions and help you decide whether a QROPS is right for you. Contact us today.