Advisers from UK based independent financial advisers, Global QROPS Ltd, have been advising on offshore pension transfers since before Qualifying Recognized Overseas Pension schemes (QROPS) were introduced, in April 2006, and have been providing QROPS advice since.
Upon the introduction of QROPS in the UK legislation many pension trustees, in the Channel Islands and the Isle of Mann especially, set up bespoke QROPS with the specific purpose of receiving UK expat pension funds.
As these trustees were offering a bespoke and, what was at the time, largely unique offshore pension services, the market forces allowed them to cost their QROPS accordingly.
As a result of high charges on the products, the cost of providing QROPS advice in the past was fairly high (certainly in comparison to that of advice on a UK SIPP, for example). Although the correct use of QROPS would lead, overall, to a potentially huge tax saving – because of the cost a charges involved – QROPS may have only benefitted those with exceptionally high funds.
However, over 3 years on since the introduction of QROPS, there are many more offshore pensions in the market place. Many of the more recent QROPS introduced are at a cost to that is no different to a UK SIPP. This has, in turn, meant many of the original QROPS schemes are driving their costs down.
It is important, therefore, that someone looking to transfer to an offshore pension speaks to an adviser at Global QROPS Ltd, as the best QROPS advice could lead to the recommendation of the least costly option.
