DON’ T WAIT UNTIL YOU RETIRE TO TAKE CONTROL OF YOUR UK PENSION
If you are in your 40s, 50s or 60s we have listed below some compelling reasons as to why you should address your pension now. As a non UK resident with an existing UK pension fund and as legislation currently stands there remains the opportunity to take control of your pension fund. Do not wait until you retire. It may be too late.
ADVANTAGES OF A TRANSFER TO A QROP
- Freedom to Control Investments – the possibilities become more or less unlimited and can include antiques, jewellery, and works of art and in certain circumstances, residential property.
- Flexibility to access funds at any time between the ages of 50 and 75 with the potential to access the funds outside these ages.
- No requirement to purchase an Annuity – under a UK scheme a possible tax charge of 82 % is payable if an annuity is not taken by the age of 75.
- Access to income and capital without deduction of tax.
- Transfer of the fund to future generations upon death.
- Free from UK Inheritance Tax following death even after the age of 75 (Finance Act 2008).
- No deduction of tax at source although taxation will apply in accordance with the legislation governing the QROPS scheme member’s country of residence.
All of the above advantages become possible after your UK pension fund has been transferred to a QROPS and you have been a non UK resident for five complete tax years. Why wait?
RETIREMENT SEEMS MANY YEARS AWAY SO WHY SHOULD I ADDRESS MY UK PENSION FUND NOW?
Many people have far more money built up over many years in their pension fund than they realise. It is not uncommon for a fifty year old to have built up twenty plus years of contributions into a pension fund often accumulating a “pot” in excess of £200,000.
Failure to plan correctly may result in the loss of your fund upon death. Take control today.
Pension funds will have been built up in many ways and can include anyone with deferred benefits in a company scheme, public sector scheme (including for example, teachers, doctors, nurses, police and members of the Armed Forces) and those with personal pensions.
Now is the ideal opportunity to take control of this large investment.
I AM STILL NOT SURE WHY I SHOULD NOT WAIT?
There are various reasons why it may be appropriate to address your pension now. Firstly, your own personal circumstances and that of your family may change. Secondly, and perhaps more importantly, future legislation may change restricting or prohibiting transfers to QROPS. HMRC regularly reviews QROPS and in May 2008 removed QROPS status from all Singapore schemes because they ran foul of the intended legislation.
QROPS transfers to locations such as Guernsey and New Zealand offer strong investor protection principles which are similar to those associated to the UK are looked upon favourably by HMRC.
THE NEXT STEP
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