We have provided some basic question and answers commonly asked in respect to QROPS and pension tranfers. From the QROPS questions menu
you will find more specific information on the specifics of certain areas of QROPS.
If we can help at all please get in touch using the form to the right.
On 6th April 2006, HMRC approved new regulations that enable UK pensions to be transferred abroad to recognised schemes known as QROPS (Qualifying Recognised Overseas Pension Schemes). A QROPS offers enormous financial benefits for ex-pats now living or planning to live out their retirement abroad.
You could be liable to serious penalties if you choose a scheme that is not an authorized QROPS. We only recommend QROPS schemes that we have investigated in detail and know to be fully authorised and approved by HMRC.
Yes, this can be possible, as long as the payments are not from an annuity or final salary pension. Some company pensions may also restrict transfer once you have begun drawing an income from them.
There are several jurisdictions offering different benefits. We have strong relationships in a variety of jurisdictions, including Guernsey, Isle of Man, Hong Kong, and Mauritius. We will recommend the best location for your QROPS based on your personal circumstances and financial goals.
Guernsey is an independent, well regulated and internationally accepted jurisdiction with a firm framework of legislation in the financial services sector.
Pension providers on the island have worked closely with HMRC to ensure a robust QROPS offering for both its resident and international clients.
It is a neutral jurisdiction which allows tax-efficient structures. This means that income and capital gains from the assets within your plan are not subject to Guernsey tax. Therefore, the assets within your plan grow in a tax efficient environment.
You can choose your QROPS Pension Transfer to be denominated in a hard currency (Pounds, Dollars or Euros).
Although Guernsey is completely independent from the UK, they are a Crown dependency and their rules and regulations are extremely similar to those in the UK. Due to this relationship it is extremely unlikely that the HMRC will rescind Guernsey as a QROPS Pension Transfer jurisdiction. They have already done this with Singapore, due to their indifference in this regard.
We recommend the total value of your pension funds should be equivalent to at least £50,000 to benefit from transferring them to a QROPS. However, there are QROPS providers that facilitate lower transfer values with lower charges, with minimum transfer value of £25,000.
Some jurisdictions do allow investment in residential property as part of a QROPS, but you must have lived outside the UK for five consecutive tax years first.
You can move commercial property from your UK pension to your QROPS via an in specie transfer. If the property isn't mortgaged, there may be no stamp duty to pay and capital gains tax would continue to be tax free. There would be tax to pay on any rental income, however.
Yes, as long as the QROPS agrees to it. You will lose the protection of UK pension regulations, but you are allowed to do this.
Yes, people of any citizenship can transfer their UK pension to a QROPS.
If your pension fund is higher than the lifetime allowance, you will be liable to pay tax on the amount above this allowance if you have not applied for enhanced protection. The current lifetime allowance is £1.5 million.
This depends because several factors will determine the amount of the corresponding costs such as pension fund size, individual circumstances, the type of QROPS chosen and the nature of the benefits.
In general the costs as a percentage work in a way that the larger your pension fund, the lower the charges will be. Transfer values can start as low as £50,000 although funds of £100,000 upwards will be able to qualify for some of the better QROPS plans.
The QROPS industry has become very competitive over recent years, and this has been reflected in the pricing structure being reduced significantly as a result. Maintenance charges in the region of £850 - £1000 are levied each year depending on the fund value and structure.
Contact one of our advisors to obtain accurate and detailed costs relative to your specific situation. We can recommend the most cost efficient and secure structure to suit your individual needs.
Yes, loan back facilities can be arranged from your QROPS, as long as certain conditions are met.
Your adviser will endeavour to ensure your QROPS is set up as soon as possible. Typically, it takes 1-3 months.
No.
No. Unfortunately, you cannot transfer a state pension into a QROPS.
Having a QROPS pension will also not affect your entitlement to a UK state pension either.
The following recognised pensions can be transferred:
A QROPS Pension Transfer ensures that all remaining assets upon your death are distributed to Named Beneficiaries.
Your QROPS will remain intact. You simply will receive your income paid to you gross, and you will be liable to pay tax through self assessment each year.
During the first 5 tax years, the QROPS trustee is required to let the HMRC know of any payments, withdrawals, or transfers made from the QROPS Pension Transfer.
After the first 5 years, the QROPS trustee is no longer required to let the HMRC know of any payments, withdrawals, or transfers made from the QROPS Pension Transfer.
Yes - during the first 5 tax years, the QROPS trustee will report any payments or transfers made to HMRC. You must also fill out a self-assessment return (available from HMRC) and declare any payments or transfers.
If you have setup a QROPS Pension Transfer you should return your completed form to the tax office that is currently dealing with your affairs, or that which was dealing with your affairs immediately before you left the UK.
From 55 years old
You can take typically take up to 25% lump sum of your fund, tax free, (but some jurisdictions will allow up to 30%)
75% minimum, remaining funds need to provide 'income for life'
No - it is only possible to set up a QROPS Pension Transfer through a recognized intermediary.
