+ Larger Font | + Smaller FontQROPS stands for Qualifying Recognised Overseas Pension Scheme. QROPS are schemes that have met the criteria set by HMRC and they can accept transfers from UK registered pension schemes.
Expat Pensions
For quite some time British expatriates have faced numerous issues when dealing with their UK pension, essentially believing that it is ‘stuck’ back in the UK. One of the biggest obstacles has been the taxation of UK pensions when based overseas. Until recently it was extremely difficult to move a UK pension to an overseas pension without being required to pay basic rate tax on the transfer.
Since pension A-day on the 6th April 2006, new regulations came into force allowing expatriates to transfer their pensions into foreign based schemes. Recognised schemes, known as QROPS are now widely available on the market and mean that those who are non-UK resident can transfer UK pensions without tax deductions and can draw them without being subject to UK tax liability.
QROPS
A QROPS is a pension scheme that is structured outside of the UK. Normally these are place into low tax jurisdictions or in countries that have more beneficial tax-free lump sum rules compared to those of the UK. You also are not required to purchase an annuity if you do not wish to do so.
One of the most significant benefits is being able to leave your remaining pension funds to your friends and family after your death. UK expatriates the world over normally find QROPS to be advantageous to more conventional pension plans.
Advice
As saving for a pension is one of the biggest financial responsibilities you will have it is strongly advised that you seek independent advice from a financial adviser. A good adviser will be able to highlight the benefits of the plan while also pinpointing any potential pitfalls in your policy.
Frozen Pension Review Service:
Please take advantage of a free, no obligation review with one of our recommended, independent pension advisers. During which they can discuss some of the various options open to you.
