Użytkownik:QROPS Benefits

We've been often asked by our clients “What are QROPS?”. They are a UK HMRC accredited scheme used for individuals who hold a UK pension plan and are considering or thinking about moving offshore. The QROPS, or Qualifying Registered Overseas Pension Scheme, is really a plan whereby individuals moves their pension offshore in a scheme which have a number of financial gains and offer higher control to the individual. The primary advantages of QROPS include;

Ability to take control of your pension in a more tax efficient way Lower running costs More significant Investment Opportunities Currency movements is removed

The principal potential problems of QROPS; A current HMRC certified QROPS scheme can be taken off off the recognized list with no warning if the HMRC thinks that it does not met the criteria laid down in UK regulations. In the example of Guernsey, 310 out of a total of 313 schemes ended up taken out in April.

There is the potential that HMRC could very well behave retroactively against QROPS schemes which it has de-registered and the pension holder could be held accountable for taxes avoided. Nevertheless this to date has not happened. HOW QROPS WORK?

QROPS are registered with HMRC for people who hold a British pension fund and are seeking to shift overseas and become exempt from UK taxes and regulations.

The agency that operates the QROPS scheme is required to be authorised by HMRC and must be experienced and taxed inside the country which it is operated from.

Once you have been a UK non-resident for more than Ten years after establishing of your QROPS, which you have to be able to prove. Your QROPS Scheme are able to stop notifying HMRC of your withdrawals from your scheme and will no longer be subject to UK pension laws.

Once the Ten year transition period have been completed you may then only be prone to the financial regulators where you are domiciled and where your QROPS Scheme is located.

How to transfer your QROPS?

As a rule of thumb it should take around 2-3 months to transfer your pension plan into a QROPS. The process is speeded up if you can in-cash your type of pension into cash. Nevertheless this is not essential to do. You will find over almost 1000 HMRC accredited QROPS Schemes, so there should be a scheme which can meet your requirements.

Schemes are based from Australia and New Zealand to Malta and Gibraltar. It’s worth noting that your QROPS does not need take place in the same country that you are domiciled. However there could be taxation challenges which you might must take into consideration with holding it in another country.

When I die what takes place with my QROPS?

All funds that are left in your QROPS when you die will be passed onto your beneficiary’s and fortunately are not subject to British inheritance taxes.

Vital when establishing a QROPS is that you take professional advice. There are many times when a QROPS isn’t suitable, and plenty of times when they are.