The hottest topic over the past few years in QROPS, what does this mean I hear you ask? On 6th April 2006 it was announced by Her Majesty Revenue and Customs (HMRC) that people with UK based pension schemes could move their pensions offshore to a Qualifying Recognised Overseas Pension Scheme.
Once you have been a non UK resident for a period of 5 years your QROPS provider no longer has to report you holding and you can take full advantage of the benefits that exist by moving your pension overseas.
These benefits include...
• Allows you to take control of where your money is invested, providing you with investment freedom and the option of ensuring your capitals securely protected.
• You can chose which assets you hold - including onshore/offshore funds, fixed deposit rates, giving you the ability to create a well balanced and diversified portfolio.
• Option to start drawing down your pension at the age of either 50 (before 2010) or 55 without the need to purchase an expensive annuity or pay UK tax charge upon death (QROPS).
• Access your money either as a lump sum or as an income in a tax efficient manner, with the potential of drawdown 100% tax-free.
• Leave part or all of your unused pension funds to your beneficiaries free of tax at source, depending on age at death and residence.
• Take income and benefits in the currency of your choice.
• QROPS drawdown is paid gross if you have lived outside the UK more than 5 years.
• Allows up to 30% lump sum available at age 50 or 55 after April 2010 free of UK tax.
• 0% tax charge on death pre retirement or below the age of 75.
• QROPS beneficiaries can avoid or dramatically reduce the UK’s 55% tax on death charge.
• No need to purchase an annuity even when your age 75 and a UK resident.
For advice or more information you can contact me, Daniel McGonigle, on (+351) 91 279 2998 or email@example.com.