· Cut through the jargon
· QROPS, QNUPS briefly explained
· CNMV, DGS & FCA – 3 approved regulators
These are only brief descriptions but you can email for more details.
A Day
ASP - Alternatively secured pensions At the age of 75 an alternatively secured pension would allow an individual withdrawal of income, similar to an unsecured pension fund such as income drawdown
AVCs – Additional Voluntary
Contributions
FSAVCs – Free-Standing Additional Voluntary Contributions
CNMV Comision Nacional del Mercado del Valores is the principal financial services regulator in Spain and responsible for authorising investment products. A CNMV adviser can be recommended, please click here
DGS Direccion General de Seguros y Fondos de Pensions is the Spanish regulator for insurance products which can be marketed in Spain. Email me to be referred to an authorised adviser
FCA
Group Personal Pension
Lifetime allowance This is a limit on the value of retirement benefits that you can draw from approved pension schemes before tax penalties apply. The Lifetime Allowance is £1.8m in the 2010/11 tax year.
Lifetime annuity A lifetime annuity converts money from a pension fund into pension income, which is taxable. There are different types to suit different circumstances and generally treated favourably for tax purposes in Spain.
Money purchase pensions Occupational pension These are only available through employers and run by pension scheme trustees. There are two types – salary-related (defined benefit) and money purchase (defined contribution).
Personal pension A pension policy taken out by an individual from an insurance company or another financial institution and into which personal contributions are made. It may also be offered by employers.
Protected rights pension
QNUPS - Qualifying Non UK Pension Scheme, which means it meets the criteria set by the regulations the UK government brought out in February of 2010. This means that for a UK or non-UK resident, there is an opportunity to make contributions to overseas schemes, established as QNUPS, with the knowledge that those funds will be sheltered from UK IHT. See also http://expatsfrombritain.blogspot.com/2010/10/qnups-qualifying-non-uk-pension-schemes.html Individual advice should be taken in all circumstances from a regulated and authorised adviser. Please email for a recommendation.
By definition, a QROPS is a QNUPS but the reverse cannot be said.
QROPS - Qualifying Recognised Overseas Pension Schemes These became available from A-Day. It is a pension scheme set up outside the UK that is regulated and recognised for tax purposes as a pension scheme in the country in which it is located. QROPS have been established in various countries across the world, many in jurisdictions with beneficial tax rules. Further information is available at http://expatsfrombritain.blogspot.com/2010/10/qrops-issues.html For specialist advice click here
Salary-related pension scheme (final salary or defined
benefit)
Section 615 This relates to Section 615(6) of the Income and Corporation Taxes Act (ICTA) 1988. These International Pensions allow for UK residents and others working abroad to have HMRC approved benefits including 100% tax free cash at retirement. For more in formation please read http://expatsfrombritain.blogspot.com/2010/09/uk-pension-100-cash.html Special expertise is required as these plans are not commonplace, for contact with an authorised adviser, please email me
Stakeholder pension
State Pension
State Second Pension
Tax-free lump sum
Unsecured Pension (Income Drawdown) This is an alternative to buying an annuity but provides an income whilst the pension is still invested. At age 75, the unsecured pension must cease and be replaced by either a Lifetime Annuity or ASP. For non UK residents or those intending to become non-resident, QROPS could be another alternative.
Pensions Advisers, including the ones that I recommend, will be happy to cut through the jargon. Email me for a recommendation |
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