Leave my pension in the UK ?

Qrops


Joined: 21/05/2011
Posts: 19

Message Posted:
16/06/2011 13:46

COULD IT BENEFIT ME MORE BY LEAVING MY PENSION

IN THE UK? NO, CERTAINLY NOT!

You may face poor fund growth, or even reduction in the capital value

in today’s financial climate. Many major employer schemes in the UK

are reporting large shortfalls in funding levels. It is sound advice to get

YOUR MONEY under YOUR CONTROL:

• If you were to leave your pension in the UK when you retire

abroad, you could be leaving yourself exposed to tax,

anywhere between 20% - 82%.

• You are not able to pass on the remainder of your pension to

your beneficiaries upon your death, this is effectively

surrendered to the pension provider.

• You will face relatively poor investment flexibility and choice

By transferring your pension to QROPS, under your own control you

will not face any of these restrictions or potential risks that some

people misguidedly think will not happen to their pension in the ‘safety’

of the UK. If you are looking to transfer your pension in to a QROPS visit http://www.the-qrop

Qrops


Joined: 21/05/2011
Posts: 19

Message Posted:
16/06/2011 14:09

www.the-qrops-specialist.com that is...

Groucho



Joined: 26/04/2008
Posts: 7993

Message Posted:
16/06/2011 16:02

http://www.qropspensiondesigner.com/??bc_ppc=Qpensionsexpfreetransfervalue70k1.8m&bc_keys=qrops&gclid=CLKoypK-uqkCFQod4QodmlH68g

cypgab


Joined: 09/01/2010
Posts: 338

Message Posted:
16/06/2011 18:14

Glanced through an article about this at the weekend - think it was the Sunday Times 'Money' but not sure. The article seemed to be saying about the possibility of being caught by the taxman for prematurely taking money out of your pension fund - and this would apply whether or not you understood the rules in the UK.

Forgive me if it is a bit vague, as I said I just glanced at it.

But with anything like this, best to seek professional financial advice.

Quarmby


Joined: 15/09/2008
Posts: 975

Message Posted:
16/06/2011 19:29

Qrops



has it ever crossed your mind that maybe a person needs their pension to live day to day?

cypgab


Joined: 09/01/2010
Posts: 338

Message Posted:
16/06/2011 20:42

http://www.hmrc.gov.uk/pensionschemes/qrops.pdf for more information

Hector


Joined: 26/08/2008
Posts: 2352

Message Posted:
16/06/2011 21:05

Be very very careful. I remember a previous pension misselling scandal. The advice to seek truly independent financial advice is the best advice. If in a union or similar, seek their advice. I certainly dont trust those who have to advertise on a foreign forum.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
16/06/2011 21:05

QROPS can be a very good tool and are being used very effectively to save tax and give greater flexibility. I have also seen them very poorly executed (normally by enthusiastic sales people in poorly regulated jurisdictions) costing fortunes in charges, tax and poor performance with no remit to complain.



The 5 year rule (of being non-resident in the UK) is very important because in those years the UK revenue calls the shots and if you do something non-compliant the tax bill can be punitive.



Good professional independent advice will take the worry away and ensure that one does the right thing which may or may not be to use a QROPS. Local knowledge of fiscal situation where you will be resident is essential especially in somewhere like the TRNC because there are some unique opportunity’s that make QROPs very attractive.

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
16/06/2011 23:43

Qrops.

'You may face poor fund growth, or even reduction in the capital value

in today’s financial climate.'

Would you not be investing in a fund or shares regardless of whether you had a sipp in UK or abroad. My BP and BHR shares and Gold ETF are the same ,wherever I live.



' Many major employer schemes in the UK

are reporting large shortfalls in funding levels. It is sound advice to get

YOUR MONEY under YOUR CONTROL: '

There is no fund in the world that will beat a works pension ,your advice is shocking!



Everything you talk about can be done in the UK under a SIPP,at least in the UK, financial advisors and SIPP providers are heavily regulated.



Lastly

'essential especially in somewhere like the TRNC because there are some unique opportunity’s that make QROPs very attractive. '

Yeah, like the unique opportunitys in property .One thing to be ripped off of your life savings , quite another to be ripped off of future pension income.







.

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
17/06/2011 10:41

Re Msg 8 Swany: I take it you refer to the 5 year rule to become officially NON DOMICILED in UK (?)

You might already be non-resident but the crux of the whole thing, whether pensions or what happens after you die, depends soley on being non-domiciled in UK - otherwise the Tax Authorities there will try and collect much money from you or from your widow.

Take independent advice and not from outfits who advertise on forums, in newspapers, or who hold "seminars".

Geoff

Famagusta City.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
17/06/2011 11:27

Geoff



No five year rule is in regard to the QROPS provider having to report to the UK Revenue. After you have been a non-resident in the UK for five years a QROPS provider does not have to report what happens in the pension scheme to the revenue thus making them more fixable. If you use the flexibility before the five years are up and find you have to go back to the UK then the tax bill and penalties can be harsh.



To get non domiciled in the UK is a very hard job. If a QROPS has been set up properly then the assets will be outside of the estate for Inheritance Tax (IHT) and on death there will be no IHT. Depending on where the surviving spouse is resident and how they tax the pension fund will dictate any on-going tax liability.



I total agree with you about getting independent advice.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
17/06/2011 11:32

Girne 29



The “unique opportunity’s” I refer to is that there is currently no income tax liability on pension or offshore income brought into the TRNC. This means that there is no tax liability for those who are willing to take on the risks associated with a QROPS. The rewards can be significant BUT as said before QROPS are not right for every one and clearly not for you as you have calculated the risk too great for you. That is why independent advice and personal research is so important so one can make an informed decision. That is why forums like this help because it brings in lots of points of view.

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
17/06/2011 15:03

Re Msg 11: Yes Swany, it IS difficult to get non-dom status, I know I did it.

You have to have severed all ties with UK, no property, no nowt. Local (Cyprus) will, credit cards on Cyprus address, and so on.

They DID allow me to keep my UK current bank account as my private pension goes into that, but only provided I transfer it out to Cyprus on a regular basis(something my pension provider only does at a high charge) and provided the account has my Cyprus address.

Geoff

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
17/06/2011 16:17

Geoff (re 13) Very well done you.



Incidentally have they officially declared you a “non-dom” or did you have to apply. I ask because you are the first person that I have come across that has managed to do it.



I assume you have no will in the UK and you will be laid to rest here (sorry to be morbid) after I trust many many happy years. I have questions because I am very interested in what you have achieved. Just practically have you citizenship here and what provision have you made for health care. Forgive me if I have asked too much and if you would prefer not to chat in public please email me james@ncmoneyguide.info

girne 29


Joined: 06/12/2007
Posts: 1488

Message Posted:
17/06/2011 22:18

Swany

The risk I am talking about is not that of transferring annuities ,after all annuities themselves are risky up to the time of claiming. What I do dispute the statement however '' Many major employer schemes in the UK

are reporting large shortfalls in funding levels. It is sound advice to get

YOUR MONEY under YOUR CONTROL:''

It is not sound advice to suggest that by leaving a works pension you would be better off. There is no scheme offshore/onshore that will ever beat a works pension.



As for my risk aversion ,I am heavily invested in AIM as part of my retirement portfolio and you cant get riskier than that,but wouldnt dream of doing the same with a SIPP or risk my works pension.Sometimes you can risk a lot to gain a little.



Another problem is that a lot of people with property in TRNC are tax dodgers already, and there is a risk of

putting oneself on the Taxmans radar when applying for qrops, and getting caught out .

Cyprusquest


Joined: 09/12/2008
Posts: 428

Message Posted:
17/06/2011 22:49

Trust someone with investing your money over the internet? You would probably be safer investing it in Greece with all that countries problems.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
17/06/2011 23:05

Hi girne 29. I think that it would be wrong to leave a company pension especially a defined benefit scheme on a whim but there times when it may be right. I agree and think that the original post was not as open and honest as it should be.



As to a works pension will always be right try telling that to the members of the 120 schemes that have failed and are in the Pension Protection Fund and the others that went before the PPF was put in place. http://www.guardian.co.uk/business/2010/mar/11/pensions



“The latest PF Risk Report – on UK DB pension risk for FTSE 100 companies sates the deficit now stands at £80 billion.” http://www.pensionsfirst.com/uploads/PFRiskReport%20Apr%202011.pdf



As to putting oneself on the Taxman’s radar when applying for a QROPs if done after five years of being non-resident then the UK revenue are not told what is going on with regard to the QROPs. If done before a long as one does not break the rules then there will be no issues.



cont...

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
17/06/2011 23:07

Girne 29 are we happy to agree you don’t like the risk of QROPs but don’t mind appropriate investment risk?



Good luck with the AIM one of my favourites at the moment is ARIANA RESOURCES they are just about to come on line (end of this year early next) with gold production in Turkey rather than just mining. One of my horrors was OXUS Gold!



Any tips?



Swany

Geoff


Joined: 25/06/2008
Posts: 1370

Message Posted:
18/06/2011 08:33

Re Msg 13 Sawny. Hello again. I had to apply and it took MUCH exchange of paperwork. But the UK authorities were helpfull albeit played it by the book. I have a will here, and they wanted to see it (morbid bar stewards) and it clearly states my wish to be laid to rest here. I hve not taken out local citizenship. Health care here is by private insurance. To be honest non-dom status is of little benefit to me and my dear wife now that we didn't already get by our non-resident status. The benefits accrue after I pass on. Hope the foregoing is helpful.

Geoff

Famagusta City.

Swany



Joined: 01/12/2009
Posts: 255

Message Posted:
18/06/2011 10:14

Re 19 Hi Geoff thank you very much, very helpful. Take care and I am sure your loved ones will enjoy your efforts but not for a long time I hope...

Ridle


Joined: 01/01/2009
Posts: 144

Message Posted:
18/06/2011 17:19

I have been doing a little research & find the revenue have been comming up with retrospective rules & there has been a recent high court case in which the revenue has won against Panthera. Thousands of investors have been affected & the penaltys can be a 50% tax charge plus levies. It does not matter to the adviser who has his commission up front He just sits on the fence. You have to be very careful

keithr


Joined: 20/08/2008
Posts: 720

Message Posted:
18/06/2011 17:25

The charges for a UK pension under QROPS can be more than the UK tax you would pay.



Tread very carefully.