BrumbaughAyotte282
Aus Salespoint
We are now habitually asked by our customers "What are QROPS?". These are a UK HMRC recognized scheme used for individuals who hold a UK pension plan and are thinking of moving overseas. The QROPS, or Qualifying Registered Overseas Pension Scheme, is a program whereby an individual moves their pension offshore to a scheme that features a number of financial advantages and offers larger control to the individual.
The primary important things about QROPS contain;
- Ability to take control of your pension in a more tax efficient way
- Reduced running costs
- Better Investment Opportunities
- Currency unpredictability is removed
The principal potential problems of QROPS;
An existing HMRC authorised QROPS scheme can be taken off off the certified list with no warning if the HMRC thinks that it does not met the criteria laid down in UK regulation. When it comes to Guernsey, 310 out of a total of 313 schemes ended up being removed in April.There is a prospective that HMRC may function retroactively against QROPS schemes which it has de-registered and the pension holder might be held to blame for taxes avoided. Having said that this as of yet has not taken place.
HOW QROPS WORK?
QROPS are registered with HMRC for individuals who hold a UK pension fund and are trying to move overseas and become exempt from UK taxes and regulations.
The company that operates the QROPS scheme needs to be authorised by HMRC and must be capable and taxed within the country which it is operated from.
When you have been a UK non-resident more than 10 years after setting up of your QROPS, which you needs to be able to prove. Your QROPS Scheme are able to stop notifying HMRC of your withdrawals from your scheme and will no longer be subject to UK pension laws.
The moment the Ten year transition period have been completed you may then only be prone to the financial authorities where you are domiciled and where your QROPS Scheme is situated.
How to transfer your QROPS?
As a rule of thumb it should take around 2-3 months to transfer your pension into a QROPS. The operation is speeded up if you can in-cash your type of pension into cash. However this is not essential to do. There are actually over almost 1000 HMRC approved QROPS Schemes, so there must be a scheme which can meet your needs.
Schemes are based from Australia and New Zealand to Malta and Gibraltar. It's worth noting that your QROPS does not need be held in the same country that you are domiciled. However there can be taxation troubles which you might need to take into consideration with holding it in another country.
Once i die what takes place with my QROPS?
All funds which are left in your QROPS when you die will be handed onto your beneficiary's and fortunately are not subject to British inheritance taxes.
Fundamental when establishing a QROPS is that you take specialist advice. There are many situations when a QROPS isn't suitable, and lots of times when they are. Please contact us here at http://myqrops.net to find out more.
