The British government introduced a brand-new initiative as far as retirement planning for British citizens living overseas. This was labeled QROPS. It was initiated to prevent those who possess a regular UK pension plan worrying that they were going to get difficulties if they decided to retire in another country. The qualifying recognised overseas pension scheme, usually referred to as QROPS, was introduced for people to move their personal pension plan into.
What are the advantages of QROPS
One of the most attractive benefits is that you’ll no longer need to pay UK income tax on your pension fund, but there are plenty more associated advantages as well. Other advantages include the opportunity to invest your pension funds any way you prefer, and also name a beneficiary for the entire fund. Anybody who has moved out of the UK, and has previously built up a pension plan there, can use this scheme.
What what you have to remember though, despite the fact that you are going to be exempt UK tax with QROPS, you are not exempt from tax entirely. You are free from paying any British income tax, however you are going to liable to any taxes that are imposed by the country you reside in. If you choose to move back to the UK within five years of opting for the QROPS scheme, there is certainly a good chance you are going to be subject to UK tax charges. Talk to your tax advisor regarding QROPs plan for expert advice.
How to discover a QROPS pension scheme accepted by HMRC
It is extremely critical that you choose to join an approved scheme, should you join any other QROPS pension plan you may suffer serious consequences. If you are unsure which of these schemes are approved the HMRC do possess a qualifying list. Literally thousands of these plans are developed and they are not all approved. If you do not follow the process correctly you could suffer severe pecuniary penalties.
What fees are involved in moving to a QROPS pension
This can fluctuate, different advisers and providers charge in several ways. Some of the advisers will probably be paid a commission through the QROPS plan providers they join you up with. The QROPS pension plan supplier you join may charge you an annual fee based on your pension fund, or single flat joining fee.
