Call us on:

+44 (0)1483 202072

Discover why so many
people rely on us to provide
up to date independent
QROPS advice on overseas
pension schemes.
Qrops
Read more
HMRC QROPS - HM Revenue Customs have released a detailed proposal for changes to the Qualifying Recognised Overseas Pension Scheme (QROPS) regime. The measure will affect QROPS and QROPS transfers actioned on or after 6th April 2012. All changes are subject to the consultation process. The objective of this measure is to ensure a fairer tax system and to ensure that the QROPS system continues to be used for its intended purpose. There have been reports that QROPS has been subject to misuse. Summary of the proposed revisions: 1. Secondary legislation will be introduced to revise the conditions that a scheme must meet to be a QROPS 2. Introduce an acknowledgement by the individual, to be completed before a transfer is made, and tax charges may apply 3. Introduce revised time limits for registered pension schemes to report transfers to QROPS 4. Provide additional powers for HMRC to request information from a scheme manager of a QROPS 5. Revise the time limits for the reporting of payments by a QROPS to HMRC Geraint Davies, Managing Director of Montfort International Ltd and QROPS.CO.UK (a leading QROPS adviser) said that, ‘Montfort International has already put together thoughts that will be submitted to HMRC as part of the consultation process’ HMRC’s detailed QROPS proposal can be viewed at: http://www.hmrc.gov.uk/tiin/tiin650.pdf (http://www.hmrc.gov.uk/tiin/tiin650.pdf) Montfort International Ltd / QROPS.CO.UK are considered leading QROPS advisors. If you are planning to move overseas, or are already a UK expatriate and would like advice on the options available, or how these proposed changes may affect you, please do not hesitate to contact our team on +44 (0)1483 202072. Wednesday, 07 December 2011 18:25
Potential Issue for Australian QROPS - Once you have reached pensionable age (which varies for those born pre-1964 but remains 60 for those born after 1964), you are allowed to withdraw your entire superannuation savings fund as a tax-free lump sum. With a growing population and with many going to Australia to retire, it seems that an increase in the number of people withdrawing funds rather than living on earnings created through employment is becoming an issue. This may cause a limit to the amount of superannuation that can be withdrawn. Hopefully it will not create a situation such as in the UK where an individual can only take a maximum 25% of their pension fund as a lump sum with the remaining amount being taken as regular payments. The importance of QROPS in other jurisdictions then becomes more important for those planning to retire younger and with greater flexibility as the Australian market looks to tighten its grip on its generous retirement facilities. Friday, 11 November 2011 16:07
Breaking UK Residence – The Gaines-Cooper Case - HMRC have won a landmark case. For those who thought staying in the UK for no more than 91 days per year was sufficient to break residence with UK – think again. The ruling comes at a time as HMRC embark upon revisions to what would constitute UK residence. Such moves will surely impact on any policy that is subsequently brought out in the coming months. The fact that Robert Gaines-Cooper considered himself a non-UK resident as he spent no more than 91 days in any year within the UK, goes to show that more is taken into account than a simple formula on how long you can stay in the country. The ruling took into account that Gaines-Cooper still had sufficient ties in the UK to make him a UK tax resident. This means he now has a tax liability dating back to 1976. This presents problems for thousands of British tax exiles who believing they had broken UK residence now face HMRC pursuing them for unpaid UK taxes. UK's grip on those wanting to break residence and perhaps domicile has tightened with relative ease for HMRC, making it more clear cut what will constitute a non-resident compared to a resident case. For example, the new proposed rules state you are not resident in the UK for a tax year if: you were not resident in the UK in all of the previous three tax years and you are present in the UK for fewer than 45 days in the current tax year; or you were resident in the UK in one or more of the previous three tax years and you are present in the UK for fewer than 10 days in the current tax year; or you leave the UK to carry out full-time work abroad, provided you are present in the UK for fewer than 90 days in the tax year and no more than 20 days are spent working in the UK in the tax year. However, days alone will not be the sole judge. HMRC will weigh up "connecting factors", i.e. other considerations. What is the reason the person has come to the United Kingdom? Recreational purposes would lend itself towards non-residence. Intentions would be indicators of residence. Frequency and pattern of visits to the UK; the longer and more frequent would tend to tip the balance. Spouse and children and their base is a key issue. Whether accommodation is purchased, leased or rented and the reasons for accommodation. If length of time in the UK is more than three years, it would seem to indicate the person is ordinarily resident in the UK. The Gaines-Cooper case shows that with these proposed new rules you are not necessarily safe from the HMRC, especially where there are reasonable aspects of doubt. This is an area, for all those who have left the UK and are in any doubt of their residence status, to urgently review and seek professional advice.  Friday, 11 November 2011 16:02
Offshore QROPS Launch New Website - The long awaited opening of the new look QROPS.CO.UK website is finally here! A complete design overhaul has been introduced to bring us into the 21st century along with a newsletter sign up for professional advisers and all interested parties. QROPS.CO.UK will continue to offer excellent offshore pension advice to all those planning to migrate, those who already have and for those professionals in the industry who would like a helping hand in what can be a very complex sphere of the financial world. Contact us (index.php?option=com_qcontacts view=contact id=1 Itemid=4) today to see how we can help. Friday, 11 November 2011 15:33
Don't leave your planning till the last minute! - Many of you may plan to retire abroad for the warmer climates, Spain and Australia being amongst the favourite destinations for British ex-patriates. Many also get 'caught up in the whirlwind' that is migration and tend to forget that the very funds that will keep you living on a day-to-day basis in retirement are your pension funds. People tend to forget about their pensions in the UK and it's not rare for people to forget about pension funds that they have accumulated over the years that are in excess of £50k. A saving that cannot be ignored! Pensions that are forgotten about tend to be invested either in cash accounts that pay next to zero rates of interest and/or are invested in funds that have no bearing to the individual's risk profile. People's risk profiles will change over a lifetime as they tend to become more risk averse as they get older and wish for a steadier income. Early planning is therefore vital for a successful and rewarding retirement. Making sure a pension fund is managed well from the start is vital. This is something that may have been missed by many ex-pats already, but with the expertise of Montfort and QROPS.CO.UK, we can certainly help get a hold on your retirement planning with our knowledge of the QROPS and QNUPS markets. Friday, 11 November 2011 15:09
       

Latest News

QROPS - how can it help?

Migration can provide new possibilities to those who wish to access their pensions before retirement.  It is possible to transfer your pensions to an overseas arrangement that has registered as a Qualifying Recognised Overseas Pension Scheme (QROPS) with HM Revenue & Customs (HMRC).

Broadly speaking, the rules of the QROPS must be the same as a UK pension fund when paying out benefits. The QROPS will have undertaken to report to HMRC on certain events for the first five years of a member’s non UK residency. After this time the requirement to report back to HMRC falls away and pensions in certain jurisdictions will permit access to 100% of the fund before age 55. This may sound attractive but care needs to be taken that the overseas fund does not breach QROPS legislation as you could face punitive UK tax charges. Similarly, you will also need to check the tax position of any overseas fund in your retirement jurisdiction.

Each person’s circumstances are different and while transferring your funds to another jurisdiction may not be suitable for many, QROPS could provide good opportunities for others.

Previously an individual had to be residing in the country to which they wished to transfer their pension fund. As this is no longer necessary, migrants can now transfer their pension to the taxation jurisdiction which offers the most advantageous tax treatment and flexibility for their funds. This is why it is important that you seek specialist advice from someone who is able to advise on both UK pension and QROPS requirements and your overseas tax position. A foreign adviser who has knowledge and experience in providing advice on domestic issues will not be able to offer advice on the full range of possibilities open to UK migrants.

As of February 2010, QNUPS are also in the news. Qualifying Non UK Pension Schemes should also be considered where appropriate.

Whatever your financial intentions, seeking independent financial QROPS and QNUPS advice at the earliest opportunity, from our registered and qualified independent financial QROPS advisors and consultants, before you finalise your migration plans, can help you to a more comfortable retirement overseas. 

Contact us by telephone on +44 (0)1483 202072 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it

website

 

Page 3 of 3

Search
Use our search engine to find something more specific:

australia & new zealand

Moving to, or interested in services for Australia or New Zealand?

For More Information
Click Here



Newsletter

Subscribe to our newsletter for regular updates.