Qualifying Recognised Overseas Pension Schemes (QROPS)UPDATE APRIL 2020 'In these difficult times it's good to know that you can see an adviser with modern technology. After initial contact by email, phone and text, but only if necessary, it is possible to make video calls' UPDATE 2017
QROPS have existed since 2006 but started to become part of overseas financial planning in early 2008. For such a recent innovation, there have been many changes along the way. Major adjustments made by the UK in April 2012, are now well established and the market more mature. Further changes were advised in March 2015. For most people, in the UK, their pension is their second biggest asset after their home. When they emigrate they have this important asset which needs careful administration and control. Tax preferences given lead HMRC controlling very closely how the funds can be used. The tax advantages include;
So whilst pension planholders regard it as ‘MY MONEY’ the tax authorities (HMRC) have a say in how it is distributed and taxed. Once the individual emigrates, or plans to emigrate, the possibility of transferring to a QROPS becomes an option. The principal advantages are;
Jurisdiction: Why not Spain? Spain is NOT a good jurisdiction for QROPS Spain does not recognise a trust structure, which is necessary to accept a UK pension. Therefore any potential transfer to a QROPS by a Spanish resident would take assets currently in held in trust, out of trust, with negative taxation consequences. It is much better for Spanish residents to have the capital sums outside Spain in a trust and then for any income to be taken and declared in Spain. EMail for more details Non-UK Nationals I am aware that people of many nationalities have, from working in the UK, preserved benefits. Good news – you do not have to take benefits when the scheme says so. You may also be entitled to a UK pension transfer to QROPS. Just email for more details. Advice The best advisers will compare all jurisdictions before making a recommendation. The determining of your priorities should be the overriding reason for recommending a particular QROPS. Some advisers only deal with one provider in one jurisdiction. If you’ve received a recommendation and would like a second opinion please email me. Qualifying Recognised Overseas Pension Schemes (QROPS) are for professional advisers and their clients and hopefully the unqualified, unregulated imitators will disappear. I guarantee that you will be given only REGULATED advice if you contact me (with brief details) by sending me an email |
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