A QROPS is a recognised overseas pension scheme that meets certain requirements. The rules
of the scheme must be broadly equivalent in terms of tax treatment, to a UK registered
With an ever increasing ageing population, there are not enough young people paying into the
state scheme to take care of pensioners. The likely result is a crack down on pensions
schemes in the future and an increase in taxes (as we have witnessed already). Luckily for
UK citizens, they can transfer their UK private pensions offshore to mitigate tax. The
Qualifying Recognized Overseas Pension Scheme (QROPS) allows most types of UK private
pensions to be transferred offshore. QROPS was designed with the intention of giving UK
expats who aren't returning to the UK the option of moving their pension to a 'white list'
country offshore such as Guernsey or the Isle of Man. Not only do you mitigate tax, but you
don't need to purchase an annuity. This means that your whole pension fund is left to your
spouse upon death and then onto your kids should your spouse pass away.
Furthermore you don't need to report to the HMRC (UK tax office) after 5 years. If you've
been abroad for 5 years already, you don't need to report to them at all. You may even be
able to access 30% of your fund immediately after transfer provided you are over 55 and have the added benefit of removing death duty tax on your remaining pension, now set at 55% by Her Majesty's Custom's & Excise.
The UK HMRC monitors the companies it has approved to provide QROPS schemes.
How QROPS work
Comprehensive list of why
QROPS could be the right
option for your pension
|Request a call back from one of our advisers.|