From 6 April 2006 HMRC withdrew the existing agreements for the transfer of UK pension rights to overseas schemes, effectively making it only possible if the receiving scheme was a QROPS.
QROPS should be considered by non-UK residents who retain benefits within a UK pension plan. It may also be appropriate for UK residents with accrued pension benefits who intend to leave the UK permanently in the near future.
Key Benefits
There are a number of key benefits of QROPS:
- No requirement to purchase an annuity
- No tax on the pension assets within the scheme
- Pension income paid gross, subject to the QROPS jurisdiction
- Pension payments can be made in a currency of choice rather than sterling
- Following death, all remaining funds within the scheme can be distributed to chosen beneficiaries
- Freedom to make additional contributions with no lifetime limit / limit annual allowance
- Increased flexibility, including potentially higher income, when drawing pension benefits
- Wider choice of investment management
Five Year “Reporting Period”
HMRC requires certain information during the five year period when the member is deemed to be resident in the UK. After the member has completed five full years outside the UK, the reporting period falls away and the QROPS becomes subject to Guernsey legislation.
The Moore Stephens’ QROPS is both regulated and recognised for tax purposes as a pension scheme in Guernsey and is also fully approved by HMRC.
Services Include
- Provision of trustee
- Assistance with the transfer in of existing UK Pension Plan
- Account opening with your choice of Investment Manager
- Accounting and administration
- Preparation of financial statements
- Liaising with advisers
- HMRC reporting, as necessary