DansbySalinas544

"What are QROPS? QROPS represents Qualifying Recognised Offshore Pension Schemes as recognised by the Her Majesty’s Revenue and Customs (HMRC). They came into effect in the pension plan simplification rules of April 6 2006. The purpose of this section of the legislations was to allow a United kingdom pension holder to transfer their funds to another country after they retire to a different one QROPS jurisdiction.

So who must look into a transfer to a QROPS?

A person with a UK pension plan who will be either looking to move to another country or is already preparing to move overseas whether your pension is currently in payment or not. On top of that those expatriates who have built up UK pension plan benefits may think about QROPS transfer.

Exactly what are the potential benefits to this type of transfer? This list is by no means inclusive although the preferred factors are;

1.      To get your pension plan paid in the same currency that you simply live in so to steer clear of the erosion of your profits as currency prices change.

2.      Ability to avoid UK income tax on your pension plan income that, depending on your country of residence would mean you pay a lower rate of tax and thus receive more money.

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

4.      To be able to pass on your remaining pension fund to your loved ones on your death. Instead of paying 55% in tax to the British Government.

5.      Greater investment selection and adaptability which suggests you’re able to maximise your fund growth.

Who should you entrust your money with?You must think of 3 key points as part of your very own due diligence;

1.      Be sure you are using a firm who has experience in the industry.

2.      Ensure your consultant does a full transfer examination, considering the pros and cons of a transfer which includes costs, jurisdictions and tax factors.

3.      Due to the complex nature make sure the consultants are qualified to the industry standard to QCF Level 4. Anyone without these qualifications won't be doing you justice.

There are numerous QROPS jurisdictions where you stand capable of finding a HMRC approved plan, including Malta, Jersey and the Isle of Man. However there are a selection of policies which have been brought in during April 2012 by the UK Government who has had a severe result on the amount of schemes which qualify under the new HMRC rules.

HMRC believed that while many of the schemes were meeting with the letter of the laws but they also were not in the spirit of the law. Guernsey schemes were specially badly hit as schemes registered up until April 2012 allowed non-residents to pay no taxes on their policies while residents needed to pay tax. This really is in contravention of the new rules and therefore 310 out of the 313 rules have been taken off the accepted list.For additional information on QROPS along with the ongoing modifications to the schemes please e mail us at MyQROPS.net.