For the many people that migrate from the UK each year, their move abroad is permanent. However, for some people, whether it is intended or otherwise, their time abroad is temporary and they eventually return to the UK. Is QROPS advice the same for both temporary and permanent migrants?
There are various reasons as to why a migrant would have left the UK on a temporary basis. One of the main reasons is usually that their employer has sent them to work overseas. Other reasons maybe that the individual is on an extended holiday or that their permanent migration plans have fallen through.
QROPS advice for temporary migrants should be treated on the same case by case basis as it would be for permanent residents.
One of the first considerations would be to establish just how long the migrant is going to spend abroad. If their time outside of the UK is only a matter of months (rather than years) it makes a huge impact as to whether someone should be considering a pension transfer overseas to a QROPS. Generally speaking, QROPS are a long term retirement solution. Many of the tax benefits and flexibility from a QROPS come at retirement – although their can be tax breaks on accumulation, too.
If an individual is in a position to take retirement benefits from a scheme, during their period of overseas residency, or they are concerned about death benefits and UK inheritance tax implications – QROPS advice should still be considered.
