Brief overview of Qualifying Recognised Overseas Pension Scheme (QROPS)
The Qualifying Recognised Overseas Pension Scheme (QROPS) is one of the prominent topics in financial management. Expats in the UK need to have a complete overview of QROPS to understand overseas pension transfers effectively. The QROPS is an overseas pension scheme which could address specific requirements pointed out by HM Revenue and Customs (HMRC).
Understanding your options
The QROPS could receive UK pension benefits from privately administered personal and corporate pension schemes without any charges for scheme sanction or unauthorised payments. QROPS serves as a UK pension for investors. If you have been a resident of the UK for five tax years, then QROPS follows UK pension regulations. On the other hand, investors who have not been residents of the UK for the last five tax years would find the QROPS subjected to laws of the overseas jurisdiction where it was based.
Helping to unlock benefits from UK pension
Help to unlock benefits from a pension. British expats have two alternatives for managing their existing UK pension schemes. The first option involves leaving the UK and retaining the workplace or private pension with a provider in the UK. The second option involves transferring their UK pension funds into QROPS.
QROPS are applicable are if a UK resident decides to emigrate and retire abroad after building their pension fund with a privately administered scheme. Also, if someone has been residing in the UK for work and has developed benefits from a UK pension scheme and then decides to return to their home country for retiring. A pension scheme is eligible for QROPS if it is approved by the HMRC. Financial advisors help to manage wealth and plan pensions.
The criteria of eligibility for QROPS could be presented as follows.
- Possession of UK pensions of any value with the exclusion of state pensions.
- Currently planning to live overseas.
- No current plans for returning to the UK or plans for staying out of the UK for at least five years.
- Not purchased an annuity already.
- Investment allocation.
- Those with a final salary scheme.
Benefits of QROPS
Some of the crucial benefits:
- You can diversify your investments with better support for investment in UK assets by UK pension funds.
- You don’t have to buy an annuity at all.
- Better protection for your investments based on jurisdiction for the overseas pension scheme.
We are fully qualified to assist our clients to plan their financial future and offer expert one to one financial planning. Deal with your pension investments effectively without having to spend extra money for taxation purposes.