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Our company is continually asked by our customers "What are QROPS?". They are a UK HMRC authorized scheme used for individuals who hold a UK pension plan and are intending to moving abroad. The QROPS, or Qualifying Registered Overseas Pension Scheme, is a plan whereby any person moves their pension offshore to a scheme that features a selection of financial advantages and give higher control to the individual.

The primary features about QROPS contain;

- Ability to manage your pension plan in a more tax efficient way

- Lower running costs

- More significant Investment Options

- Currency unpredictability is removed

The principal cons of QROPS;

A current HMRC permitted QROPS scheme can be removed off the accepted list with no warning if the HMRC thinks that it does not meet the criteria laid down in UK regulations. When it comes to Guernsey, 310 out of a total of 313 schemes were taken out in April.There is a potential that HMRC could very well process retroactively towards QROPS schemes which it has de-registered and the pension holder might be held liable for taxes avoided. Having said that this up to now has not taken place.

HOW QROPS WORK?

QROPS are registered with HMRC for people who hold a British pension fund and are trying to shift overseas and become exempt from UK taxes and legislation.

The organisation that operates the QROPS scheme ought to be authorised by HMRC and must be certified and taxed inside country which it is operated from.

Once you have been a UK non-resident more than Ten years after setting up of your QROPS, which you needs to be able to prove. Your QROPS Scheme can stop notifying HMRC of your withdrawals from your scheme and will no longer be subject to UK pension laws.

As soon as the Ten year transition period has been completed you may then only be prone to the financial regulators where you are domiciled and where your QROPS Scheme is located.

How to transfer your QROPS?

As a rule of thumb it should take around 2-3 months to transfer your pension plan into a QROPS. The process is speeded up if you can in-cash your type of pension into cash. Nevertheless this is not essential to do. There are actually over almost 1000 HMRC recognized QROPS Schemes, so there ought to be a scheme which can satisfy your requirements.

Schemes are based from Australia and New Zealand to Malta and Gibraltar. It's important to note that your QROPS does not need take place in the same country that you are domiciled. However there could possibly be taxation problems that you may possibly have to take under consideration with holding it in another country.

Once i die what takes place with my QROPS?

All funds which are left in your QROPS when you die will be transferred onto your beneficiary's and fortunately are not subject to British inheritance taxes.

Fundamental when establishing a QROPS is that you take professional advice. There are many times when a QROPS isn't suitable, and several times when they are. Please contact us here at http://myqrops.net to find out more.