QROPS for UK Pensions
- If you hold a UK pension and are a resident of any country other than the UK, current pension legislation permits you to transfer your pension assets into a registered QROPS pension plan.
- The QROPS is open to all nationalities, including British citizens. Any person who has worked in England and accumulated assets in a UK pension, and is now not a UK resident, can apply for a pension transfer.
To inquire about transferring your UK pension assets please complete our no-obligation questionnaire below:
Background Information on the QROPS
Following the changes to UK pension legislation on April 5, 2006, International Pension Schemes have all but become extinct. Open to all non-UK tax residents is an overseas pension scheme ("Overseas Scheme") which is registered with Her Majesty’s Revenue & Customs ("HMRC") as a Qualifying Recognised Overseas Pension Scheme ("QROPS") for this purpose.
A QROPS is structured in a similar manner to a UK pension, i.e. there is an investment vehicle which is owned on your behalf by a pension administrator (trustee). The difference arises where the pension administrator is based outside the UK and only reports back to HMRC.
The Overseas Scheme is specifically designed to enable non-UK resident individuals, who have accrued pension benefits in the UK, to transfer these out once they have left the UK. Provided that a UK Registered Pension Scheme and an Overseas Scheme have the appropriate transfer out and transfer in powers respectively, individuals who leave the UK and become a member of an Overseas Scheme, are able to request a transfer of their UK benefits.
The Overseas Scheme is open to all nationalities. If you are a Canadian, Australian, New Zealander or any other nationality who has worked in the UK as a British Expatriate, you can apply for an Overseas Scheme. This service may be particularly useful for those who currently reside in Switzerland, Jersey, Guernsey, the Cayman Islands, the Bahamas, British Virgin Islands, Bermuda and the Isle of Man.
Due to the fact that the Overseas Scheme is an international contract, future benefit payments can potentially be received without deduction of UK tax. Individuals will be responsible for declaring the income in their own country of residence. An Overseas Scheme provides asset protection and tax effective planning opportunities. More importantly, after the policy has been running for five years there will no longer be any obligation to report to the UK HMRC.
- Minimum account values may apply to QROPS transfers. Please use the form above to contact us for further details.
- There is no requirement to purchase an insurance annuity.
- You may only hold assets admissible under UK Pension rules and choose your own investment strategy investing in mutual funds, stocks, bonds, alternative investments, deposits, commercial real estate, private equity, options etc.
- Your investments may be denominated in any major convertible currency and with the consent of the trustee; you may choose your own suitably qualified fund manager.
- Fees for the Overseas Scheme are on a sliding scale.
- The pension plan is governed by law and the trustee is regulated by their local monetary authority.
How can I confirm the legitimacy of the QROPS?
Details of the QROPS can be found on the HM Revenue and Customs website. The pension advisor is UK based and registered with the Financial Services Authority.
Related Links
HM Revenue & Customs - www.hmrc.gov.uk/pensionschemes
QROPS - www.hmrc.gov.uk/pensionschemes/qrops.pdf
