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Help or Advice >> Banks, Estate Agents, Solicitors >> QROPS Pensions
http://www.tortosaforum.com/cgi-bin/yabb2/YaBB.pl?num=1307130878 Message started by PlanesPete on Jun 3rd, 2011 at 9:54pm |
Title: Re: QROPS Pensions Post by Bunter on Aug 4th, 2014 at 4:27pm
Qualification period 5 years of non UK residency
http://www.ftadviser.com/2013/03/08/pensions/personal-pensions/the-pros-and-cons-of-qrops-qnups-for-clients-Wn4rFpE79KKo4qvKRl1gUI/article.html http://www.ftadviser.com/2013/07/18/pensions/personal-pensions/pitfalls-with-qrops-qjPokXTS0P46e5fAauWdtJ/article.html comments from the above article. Richard Holmes 10:35 AM on 19/7/2013 I just wanted to pick up on a very important point. This article doesn't make it clear that QROPS are for UK pension holders who have already retired abroad or who are pretty sure that they will retire abroad. What I take from this article is that it seems to make the point that QROPS are right for transient expats who may do the rounds, work in a number of countries and who plan to return to the UK. As a Financial Adviser who specializes in QROPS I am frequently contacted by this type of expat. They have often read somewhere, or been advised that just because they are offshore a QROPS is a great solution. This is not so, QROPS are for people who have or already reached retirement abroad or who aren't at retirement age yet but who fully intend to stay abroad and retire abroad. There could be good reasons for wanting to transfer out of your existing UK pension/pension but QROPS are usually not the answer unless you are fully confident that you will retire abroad. If you would like to find out more please contact me via my website www.QROPS-advice.com Report Abuse Richard Holmes 10:49 AM on 19/7/2013 I also agree with the gboal post. Anyone who had transferred their UK pension to a Guernsey QROPS does not have to transfer out. They can if they wish, but they may not need to. If in any doubt as to the suitability of a former QROPS pension in Guernsey you should contact a QROPS expert. Please see my website in my earlier post. Report Abuse gboal 10:54 AM on 19/7/2013 There are several reasons why an expat who returns to the UK could still be much better off with a QROPS. 1. Crystallisation in relation to lifetime allowance. 2. The fact that member payment charges only apply to the relevant transfer fund (and not to the growth overseas) - meaning a large reduction in the effective tax charge on death, and more flexibility in relation to drawdown on the non-RTF. Happy to discuss! UK tax charges on payments made from a QROPS Some UK tax charges can still apply to payments made from the overseas scheme if you: are UK resident when the payment is made were UK resident earlier in that tax year or in any of the five previous tax years UK tax charges will apply to: any unauthorised payments made by the overseas scheme payment of a lump sum that would be taxed if paid from a UK registered pension scheme If an unauthorised payment occurs because the QROPS invests in'taxable property' you'll be charged tax even if you haven't been a UK resident for more than six years before the investment was made. The scheme manager of the QROPS should tell HMRC when they make a payment that would be taxable. Unauthorised payments from pension pots Technical guidance - UK tax charges that can apply to payments from a QROPS Spain is NOT a good jurisdiction for QROPS Spain does not recognise a trust structure, which is necessary to accept a UK pension. Therefore any potential transfer to a QROPS by a Spanish resident would take assets currently in held in trust, out of trust, with negative taxation consequences. |
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