UK pensions abroad Qrops

Qrops


Joined: 21/05/2011
Posts: 19

Message Posted:
21/05/2011 17:04

New legislation allows British expats to transfer their UK pension overseas into a Qrops (Qualifying Recognised Overseas Pension Scheme) Giving early access to tax free cash lump sums in a tax friendly environment with more flexibility and total investment freedom compared to a UK based pension scheme.



Comparison Between UK Pensions and QROPS

CASH LUMP SUM

UK Pension:- This is limited to a maximum of 25% of the value of your pension fund and for occupational pension schemes the tax free amount is based upon a formula involving salary and service.

QROPS:- May offer a much higher tax free cash lump sum which can be up to 100%.

TAXATION

UK Pension:-All income tax derived from a UK pension is taxed at source.

QROPS:- Can significantly reduce the amount of income tax, in some cases to zero.

ANNUITY



UK Pension:- Pension law forces you to purchase an annuity by your 75th birthday.

QROPS:- No need to EVER purchase an annuity. This means pension companies do not keep your money

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
21/05/2011 17:18

QROPS have been around for some time and the legislation is not new it is tried and tested financial option.



Comparison Between UK Pensions and QROPS



CASH LUMP SUM



UK Pension:- This is limited to a maximum of 25% of the value of your pension fund. TRUE



QROPS:- May offer a much higher tax free cash lump sum normally around 30% The jurisdictions that gave higher amounts have been struck off by the UK revenue and no longer qualify



TAXATION



UK Pension:-All income tax derived from a UK pension is taxed at source but may benefit from a double taxation agreement in some jurisdictions.



QROPS:- Can significantly reduce the amount of income tax, in some cases to zero. TRUE



ANNUITY



UK Pension:- Pension law forces you to purchase an annuity by your 75th birthday. This is no longer true as New Legislation that came in to place in the April did away with this.



QROPS:- No need to EVER purchase an annuity. This means pension companies do not keep your money TRUE.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
21/05/2011 17:23

For some people there are lots of other benefits from using a QROPS but for others it would be a disaster and as with a lot of things not all QROPS are the same.



For more information about QROPS and pensions in the TRNC check out http://www.ncmoneyguide.info were once you are lodged on / registered you will find lots of useful financial information.

Qrops


Joined: 21/05/2011
Posts: 19

Message Posted:
21/05/2011 17:51

Very true, there are a lot of different Qrops around with a very different outcome. Independent advice should be sought from an expert.

For more information check out http://www.financial-management.co