As pension rules are set to change again at the financial year end in April, retirement savers saw Qualifying Recognised Overseas Pension Scheme (QROPS) numbers increase again.
Today, 984 QROPS are open for business around the world according to the latest QROPS List published by HM Revenue and Customs (HMRC).
Australia opened more new pensions than any other financial jurisdiction – with 19, taking the number of QROPS available there to 82 when only one remained open after the last set of pension rule changes in June 2015.
Austria, India, Ireland, Italy and Jersey all added one extra QROPS to their tally since HMRC released the last QROPS List two weeks ago.
Lifetime allowance restrictions
The offshore pensions for British expats and former international workers with UK pension rights are now available in 41 financial centres – unchanged since the last list.
In April 2016, retirement savers face restrictions on their lifetime allowance for pension savings in the UK – but this rule will not apply to QROPS. The threshold will drop from £1.25 million to £1 million.
HMRC will test transfers into QROPS to make sure the funds do not breach the £1 million limit, but once into the offshore scheme, they are not test again and can grow without restriction.
HMRC will publish the next QROPS List on March 1, 2016.
QROPS List By Financial Jurisdiction
|Country||No of QROPS|
|Isle of Man||202|
|United States of America||2|
If you would like to have more information on QROPS, or if you would like to seek advice from a pensions expert, please contact us at firstname.lastname@example.org.