Latest QROPS News
Migration can provide new possibilities to those who wish to access their pensions before retirement, say migration finance experts Montfort International plc 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 back 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 to ensure you don’t come unstuck there.
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 this pension fund. As this is no longer necessary, migrants can now transfer their pension to the 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 is used to giving advice on domestic issues will not be able to give advice on the full range of possibilities open to UK migrants.
Whatever your financial intentions, seeking QROPS advice early from the registered and qualified QROPS advisers and consultants at Offshore QROPS (info@qrops.co.uk, calling 00 44 (0)1483 202072 before you finalise your migration plans can help you to a more comfortable retirement overseas.
.