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If you have moved from the UK permanently or at least for the long-term, it can be beneficial to transfer any frozen UK occupational pensions into a QROPS. The main benefits are 100% tax free withdrawal at just 55 years old, complete investment freedom, multi-currency options and no UK Inheritance Tax.
Talk to an advisorEach person’s situation is different and so the merits of transfer need to be considered on a case-by-case basis. The only constant is that expert advice from an Independent Financial Adviser experienced with QROPS, such as Kastle Offshore, is essential before any decision to transfer is made. Some of the complexities can be best understood by reading the FAQs.
The potential benefits of transferring your Frozen UK pension Plan into a QROPS are, 100% Tax-free cash lump sum at 55 years old, No need to purchase an annuity, Tax efficient, Funds remain on death, No Inheritance Tax, Multi Currencies and Secure jurisdictions.
As a QROPS is also a Lump Sum investment, all the comments in that section of the website also apply. In particular, a QROPS is likely to give access to a far wider choice of investments than a typical UK occupational pension provider, including access to Shariah Compliant Funds and so-called ethical investment funds.
QROPS stands for a ‘Qualifying Recognised Overseas Pension Scheme’. To ‘Qualify’, the scheme has to meet HM Revenue and Customs rules to ensure that it should be properly and honestly managed and the scheme manager has to provide HMRC with specific information. To be ‘Recognised’, the scheme must be run as a pension scheme, and regulated as such, in the jurisdiction where it is established. To be ‘Overseas’, the scheme must be based outside the UK; and Kastle Offshore would recommend using well-regulated jurisdictions such as the Isle of Man, Gibraltar and Malta.
Not at all – that’s an often repeated myth! There are plenty of circumstances and reasons why transferring to a QROPS can be beneficial, not least of which is UK taxation.
No. Most public sector pensions can’t be transferred into a QROPS. We would also recommend caution before transferring a Defined Benefit pension into a QROPS, depending upon how well funded the scheme was and the transfer value offered. Similarly, a QROPS would usually not be economic if the total value of all pensions being transferred was much less than about £50,000.
Have more questions? Give our team a call.
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Kastle Offshore assisted me with my financial plan whilst I was working at Schlumberger in Libya. Martin is a professional and trust worthy financial advisor who provides me regular financial reviews on my investments. I am very happy with Martin’s service and continuing support of Kastle Offshore. I am more than happy to recommend Martin to any friends and professional colleagues.