QROPS: QUALIFYING RECOGNISED OVERSEAS PENSION SCHEMES

A transfer of a UK pension fund to a pension scheme provider in an overseas location such as Guernsey, New Zealand or Isle of Man is done via a Qualifying Recognised Overseas Pension Scheme or QROPS, pronounced “queue-rops”.

HMRC APPROVAL AND THE FIVE YEAR RULE

Her Majesty’s Revenue and Customs (HMRC) allow the transfer of a UK pension fund to a QROPS.

For someone with a UK pension fund, a QROPS can be taken out as soon as they have become a non UK resident providing they intend to remain so for the foreseeable future. Therefore, a QROPS can be taken out as early as the first day of non UK residency or after say two years or even many years later.

For those QROPS members who have been resident in the UK at any time in the last five tax years, the scheme must behave as though it were a UK scheme. This five year rule does not relate to the time the QROPS was taken out it relates to non residency.

After five complete tax years, this requirement falls away and additionally, there is no reporting requirement to HMRC.

SUMMARY OF THE ADVANTAGES

• Freedom to Control Investments
• Flexibility to access funds
• Potential for an immediate cash lump sum payment
• No requirement to purchase an Annuity
• Access to income and capital without deduction of tax
• Transfer of the fund to future generations upon death
• Free from UK Inheritance Tax
• Tax planning

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?

TAKING ADVICE

The transfer of pension rights from any UK registered pension scheme is not a matter to be taken lightly and specialist advice is essential. It is important to choose a specialist pension advisor that is appropriately authorised and regulated coming from a background of UK pensions and pension transfers.

Arbutus Qrops is a trading name of Premier Pension Solutions S.L. and is appropriately authorised and regulated.

We are at the forefront of the overseas pension transfers market with over forty years combined experience specialising in UK pensions. We liaise directly with Providers and HMRC and unlike many overseas advisers we do not believe in the "one size fits all" high commission model so often offered as a solution regardless of the client's real needs.

THE NEXT STEP

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