LefevrePaull57

"What are QROPS? QROPS refers to Qualifying Recognised Offshore Pension Schemes as well known by the Her Majesty’s Revenue and Customs (HMRC). They came into effect in the pension simplification rules of April 6 2006. The intention of this section of the laws was to allow a British pension plan owner to move their funds overseas every time they retire to a different QROPS jurisdiction.

So who should be thinking about a transfer to a QROPS?

A person with a UK pension that is either aiming to move overseas or is already aiming to move abroad no matter whether your pension is currently in payment or not. In addition those expatriates who have developed UK pension plan benefits may also consider a QROPS transfer.

What are the benefits of this kind of transfer? This list is by no means inclusive even so the most popular factors are;

1.      To have your pension plan paid in the same currency that you live in so to prevent the erosion of your profits as currency prices change.

2.      Capability to avoid UK income tax on your pension plan income which usually, depending on your country of residence will mean you have to pay a lower rate of tax therefore obtain more money.

3.      To never need or be forced to purchase an annuity, this means you can get your pension income as the way you see fit.

4.      To be able to pass on your remaining pension fund to your beloved ones on your death. Instead of paying 55% in tax to the United kingdom Government.

5.      Bigger investment choice and adaptability that means you’re able to increase your fund growth.

Who should you entrust your money with?You should think of 3 key points as part of your own due diligence;

1.      Be sure to are using a company who has experience in industry.

2.      Ensure your consultant does a full transfer examination, considering the pluses and minuses of a transfer including charges, jurisdictions and tax factors.

3.      Due to the complex nature be sure the specialists are qualified to the industry standard to QCF Level 4. Anyone without these skills won't be doing you justice. There are plenty of QROPS jurisdictions where you stand capable of finding a HMRC approved scheme, including Malta, Jersey and the Isle of Man. Nonetheless there are a number of policies which have been brought in during April 2012 by the UK Government that has had a severe influence on the number of schemes which qualify under the new HMRC rules.

HMRC felt that while many of the schemes were being meeting with the letter of the laws nonetheless they were not in the spirit of the law. Guernsey schemes have been especially badly hit as schemes registered up until April 2012 allowed non-residents to pay no taxes on the policies when residents were forced to pay tax. This is in contravention of the new rules and consequently 310 out of the 313 rules have been taken out of the recognized list.For additional information on QROPS along with the continuing adjustments to the schemes please contact us at MyQROPS.net.