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"What are QROPS? QROPS is known as Qualifying Recognised Offshore Pension Schemes as acknowledged by the Her Majesty’s Revenue and Customs (HMRC). They came into effect in the pension plan simplification guidelines of April 6 2006. The purpose of this part of the procedures was to allow a UK pension owner to transfer their funds to another country when they retire to another QROPS jurisdiction.

So who should look at a transfer to a QROPS?

A person with a UK pension that's either aiming to move offshore or is already going to move abroad whether or not your pension is currently in payment or not. Aside from that those expatriates who have developed UK pension plan benefits may also consider a QROPS transfer.

Exactly what are the primary advantages of this type of transfer? This list is by no means exhaustive however the most favored factors are;

1.      To own your pension plan paid in the same currency that you just live in so to stay away from the erosion of your profits as currency prices change.

2.      Capability to avoid UK income tax on your pension plan income which, depending on your country of residence will mean you have to pay a lower rate of tax therefore have more money.

3.      To never need or be forced to purchase an annuity, which means you can obtain your pension income as the way you see fit.

4.      To be able to pass on your remaining pension fund to your beloved ones on your death. Rather than pay 55% in tax to the UK Government.

5.      More significant investment selection and flexibility which suggests you’re able to increase your fund growth.

Who should you trust your money with?You should look 3 key points as part of your very own due diligence;

1.      Be sure you are using a company who has experience in the market.

2.      Ensure that your consultant does a full transfer evaluation, taking into consideration the disadvantages and benefits of a transfer which includes charges, jurisdictions and tax factors.

3.      Due to the advanced nature make sure the advisors are qualified to the industry standard to QCF Level 4. Anyone without these accreditations will not be doing you justice. There are a number QROPS jurisdictions where you are capable of finding a HMRC approved scheme, including Malta, Jersey and the Isle of Man. Nevertheless there are a selection of rules that were brought in during April 2012 by the UK Government which has had a severe result on the amount of schemes which qualify under the new HMRC rules.

HMRC thought that while numerous schemes were definitely meeting with the letter of the legislations however they just weren't in the spirit of the law. Guernsey schemes have been in particular horribly hit as schemes registered up until April 2012 allowed non-residents to pay no taxes on the policies whilst residents were forced to pay taxes. This is certainly in contravention of the new rules and thus 310 out of the 313 rules have been taken from the recognized list.For additional information on QROPS along with the continuous modifications to the schemes please e mail us at MyQROPS.net.