All those people who are going to leave UK or have already shifted from UK to another country and possess a UK pension plan, here is a good news for them. Now all of them don’t have to be worried regarding getting their pensions on a regular basis; QROPS is there to help them in every possible way in this regard.
Qualifying Recognised Overseas Pension Scheme, popularly known as QROPS, was first introduced in April 2006 as a part of UK government’s pension simplification initiative. This system helps one to transfer UK pension to a Qualifying Recognized Overseas Pension Scheme (HMRC Approved Schemes). Along with offering pension transferring facility, QROPS also facilitates people with enormous number of financial benefits.
Currently, a wide range of pension schemes of the UK can be passed over into QROPS; occupational pensions, stakeholder pensions, personal pensions, self invested personal pensions (SIPPs), pensions used for contracting out of state earnings related pension schemes (SERPS) are names of a few.
Will you qualify for QROPS?
According to the norms of Her Majesty’s Revenue and Customs, a person will only be able to avail QROPS if he/she is a non-tax resident for at least five years. Once a person meets this criterion, the QROPS of the person will not be regulated by the Her Majesty’s Revenue and Customs. The authority also says that a person can make a QROPS transfer from one year of leaving the UK.
The Benefits you will get through QROPS
While using the QROPS you will get a number of advantages through it, which include:
o You can easily avoid IHT on the pension fund.
o You will enjoy protection against future creditors.
o You are availing QROPS means you are no longer required to purchase annuity by 75, or face an 82% tax charge
o QROPS will give you improved investment flexibility
o You can enjoy a 25% tax free lump sum.
o You will have the choice of currency.
o Enjoy income more tax efficiently from your pension
o The ability to leave 100% of your pension to a nominated beneficiary.
o You don’t have to purchase an annuity
So, why wait? Now no need to worry when after spending your entire life you are shifting to any other country; because QROPS is there to help you in the monetary aspect.