QROPS are relatively new and is the result of changes in government regulations relating to pensions. These regulations set out specific criteria allows the transfer of UK pensions overseas providing certain conditions are met. Being a qrops specialists assisting pension transfers for British expats today. Any overseas pension scheme that meets these requirements is said to have qualified and they appear on the list published by HMRC and is known as the QROPS list. Included among these requirements is the fact that the pension should be recognized in the tax ation by the state in which it was set. Therefore, it is known as a Qualifying Recognised pension Foreign pension scheme (or QROPS). QROPS schemes are growing in popularity as increasing numbers of people find out about their profits.
Saving tax is the main draw, but also offers other advantages QROPS pension. These include a broader range of investment opportunities as the UK pension funds with QROPS pensions can choose from available worldwide investing. QROPS also offers a solution to the problem of fluctuating exchange rates when you come to draw your pension, because you can arrange to have your QROPS pension in the same currency as the currency used in the country where you reside.
Recently published figures indicate that more than 7,300 QROPS transfers have occurred since the rules changed in 2006. This represents approximately 500 million? Value. Interestingly, the 7300 figure represents more than three times the number of people who choose alternative Secured Pension (ASP). It has also been available since the change in power in 2006 and an alternative form of pension which avoids the need to purchase an annuity at age 75. Although they have advantages over other UK pension they do not avoid the duty tax on death, whereas no inheritance tax payable on QROPS pension.
In terms of location for QROPS, Guernsey is a popular choice. This is mainly due to higher tax incentives related to investments in Guernsey. In another report recently by the Guernsey QROPS providers revealed that applications for QROPS pension increased in recent years from about 50 months to about 100 a month.
However, a company spokesman commented that this was partly due to the fact that places like Singapore has removed their QROPS status. This reflects another reason why Guernsey QROPS are very popular, which is the fact that HMRC rules closely attached in Guernsey. Therefore, the British investors feel more confident in their retirement funds transfer to the island.
Another reason for the increased number of QROPS transfer is the increasing number of Britons retiring abroad. If you are thinking of retiring overseas QROPS adviser can provide details of the benefits of transferring your pension overseas. They will also recommend approved QROPS schemes and provide guidance on how you can qualify for a QROPS pension provision to be fulfilled.