Posted by Paul Davies on 10/08/09 14:40
Massive opportunities exist for UK Pension scheme members moving or living outside of the UK.
Since 6th April 2006, regardless of where you are living overseas, under the UK Her Majesty’s Revenue and Customs (HMRC) Qualifying Recognised Overseas Pensions Scheme (QROPS) rules, it is now possible for:
Pension benefits to be accessed before the UK pension scheme’s stated retirement age;
Payments to the pension member to be paid free from tax;
Pension benefits to be paid with no requirement to purchase an annuity;
Have the scheme investments grow free of UK tax.
Her Majesty’s Revenue and Customs (HMR&C) will allow UK pensions to be transferred overseas, providing the receiving scheme is a QROPS.
What is a QROPS?
In short, a QROPS is essentially an overseas pension scheme that is required to follow UK pension rules for a period of the pension member’s overseas residency. It is important to know the finer details of the rules, however, as any unauthorized payments to members could result in tax charges.
Using their knowledge and experience of QROPS, Global QROPS can ensure that the UK rules are followed and the maximum benefits can be utilised.