Networth
Finding suitable QROPS solutions
- Published: 14 Oct 2012 at 00.00
- Newspaper section: Spectrum
Qualified Recognised Overseas Pension Schemes (QROPS) have evolved tremendously since 2006 and are now recognised as highly advantageous pension vehicles for expats who are retiring outside the UK. Even if you are not British, if you have worked in the UK you are highly likely to have a deferred pension that can be exported. By doing this you will have a number of advantages over leaving the scheme in the UK and drawing a pension from there once you retire. The table outlines the differences clearly.
Last week we discussed the latest QROPS rules changes that took effect in April this year. These include longer reporting periods for which QROPS administrators must inform Her Majesty's Revenue and Customs (HMRC) about movements in individual schemes, and stricter requirements for individuals to acknowledge they have been advised of the full facts about transferring to a QROPS.
The most significant change is that the jurisdiction where the QROPS is domiciled must treat residents of that country and non-residents drawing pension benefits equally for tax purposes. Thus if you transferred your UK pension to, say, Guernsey the benefits must be taxed in the same way as those of a Guernsey resident.
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