What are QROPS?
Qualifying Recognised Overseas Pension Scheme (QROPS)
The Finance act of 2004 made it possible with effect from April 2006, for UK pensions to be transferred to any overseas pension scheme. The scheme has to be registered with HMRC as a QROPS.
Qrops are overseas pension schemes which satisfy rules and regulations laid down by the UK Legislation. Prior to 2006 it was generally only possible for a person to transfer his or her UK pension to an overseas pension Scheme located in the person’s new country of residence. This restriction was removed as a consequence of the change in UK pension’s legislation in 2006. This not only enables an individual to freely transfer a UK pension overseas, it also gives choice over where to transfer a UK Pension
When considering whether it is appropriate for a client to transfer their UK pension arrangement to a QROPS, it is essential that the current UK options and restrictions are understood.
Amongst the main reason for advisers recommending QROPS to a client is the removal of currency risk, greater lump sum possibilities and the Inheritance Tax benefits. As a number of UK pension transfers to overseas pension solutions continue to rise, it is imperative Advisers keep a close eye on the UK pension changes.
Gladstone Morgan offers you a complete service for transferring your UK pension to a Qualified Recognized Overseas Pension Scheme (QROPS) our advisers will answer any questions you have explain the steps to be taken and complete all the paperwork. You can be sure that you will receive clear, simple and straight forward fact based on the official guidance by HMRC
You can choose a scheme that is less restrictive than UK pensions in the way in which it treats withdrawals, investments and you can receive your pension benefits in a low tax environment.