17 May 2012
The coming of QROPS or Qualifying Recognized Overseas Pension Schemes has offered a lot of versatility to former UK residents. They can now move the UK pension plans to global jurisdictions without having to be frustrated by the rigorous regulations of UK pension rules. QROPS comes with a great amount of financial benefits to individuals who are considering to move overseas, or who may have already emigrated, and desire to transfer their pensions.
Tax Advantages before QROPS, it was obligatory to pay a tax for moving your pension to offshore accounts. With QROPS, as being a non UK resident, there is no need of paying those taxes on transferring pensions or withdrawing money from global jurisdictions. Money and assets held with the QROPS are certainly not a subject to UK taxation and income is paid gross. In the first five years, your QROPS providers must document all the actions of the pension scheme to Her Majesty's Revenue & Customs (HMRC) after which it is regulated by the specific offshore jurisdiction.
Having QROPS makes it much simpler for you to choose for a selection of investment possibilities. You will be able to invest in such attractive choices like bonds, equities, hedge funds or gilts.
Your QROPS consultant is the right person to turn to for suitable advice on such investment options. Death benefits in contrast to UK pensions, the value of QROPS will pass to your beneficiaries without being subject to UK taxation, in the event of your death.