Alongside the UK Pension Drawdown providers there are nearly 3000 Qualifying Recognised Overseas Pension Schemes (QROPS)

(source: http://www.hmrc.gov.uk/pensionschemes/qrops.pdf )

QROPS are offered in numerous jurisdictions around the world. These include :

The UK Pension rules have been transformed since 6th April 2011 and are integral in deciding how to take pension drawdown in the UK or via QROPS.

Gerard Associates Ltd provides advice on the highly regulated UK Pension Drawdown system with options available abroad via QROPS.

The QROPS listed above can help you to avoid the most common reservations in UK Pension planning:

  1. Rules telling you what cash and income you have to take (and how UK flexible drawdown now provides significant flexibility).
  2. Explain the Death taxes from zero to 82%
  3. Whole raft of new rules, greater flexibility and higher death taxes applicable to UK Pensions from 6th April 2011.
  4. Possibility of not being able to transfer from certain pension schemes post April 2012.

But which is the right one for you?

  • UK Pension drawdown or QROPS
  • Where do QNUPS (Qualifying Non UK Pension Schemes) fit in ?

  • Why is Guernsey such a prominant QROPS jurisdiction with so few QROPS schemes compared to Australia and Ireland?

The new Pension Drawdown and QROPS are proving to be a revelation for UK Pension holders. With full approval from HMRC and simpler rules. UK Pensions funds will once again be the best investment you ever made.

    Take control of your pension fund. But don't take risks!

UK Financial Services Authority authorised and regulated advice from Gerard Associates Ltd.

Contact us now to find out your options confidentially and without obligation.

+44 (0) 1884 250 118

info@gerardassociates.co.uk

Deciding how to take your pension benefits is one of the most important financial judgements you will have to make. At one end of the scale is the dependable secure income for life that comes with a conventional annuity; at the other is the much more flexible, but riskier income drawdown.

This guide looks at the options currently available, their advantages and disadvantages and importantly, the impending changes to UK pensions legislations.

Gerard Associates aims to give you information to help you make your own financial decisions and to help you make an informed choice. The information does not constitute financial or other professional advice.

 

What are my options?

 The main options at retirement for UK residents are:

 

1. Lifetime annuity - also known as a Secured Pension.

 

2. Pension Drawdown also known as income drawdown.

 

3. Phased retirement - rather than take your benefits all at once, you can phase them in, using annuities, pension income drawdown, or both.

 

5.  Fixed term annuities also known as ‘Third Way’ plans which provide some of the security of a lifetime annuity with some of the flexibility of pension income drawdown.

 

Please use the menu on this page to read about each of the above options in more detail, as well as the important information you need to know.

 

If you are considering moving abroad, or are already an expatriate, then you should also look at our QROPS pages for more information about maximising your UK pension benefits.

Submitted by qrops on Mon, 14/Jun/2010

QNUPS – is the latest piece of jargon for the expat or UK resident with a UK Pension or a QROPS to consider!

15th February 2010 saw the implementation of The Inheritance Tax Qualifying Non-UK Pension Schemes (QNUPS) Regulations 2010 No. 51. Full details available at: http://www.opsi.gov.uk/si/si2010/uksi_20100051_en_1

Whilst there is no mention of the abbreviation ‘QNUPS’ is seem likely that this will become a common phrase and an integral part of many expats lifecycle financial planning.

The Finance Act 2004 potentially allowed QROPS  (Qualifying Recognised Overseas Pension Schemes) death benefits to become chargeable to UK Inheritance tax and these amendments are retrospective to 6th April 2006.  

To clarify a non UK resident may transfer to a QROPS and on death at any age no UK Inheritance tax is payable and this extends to a new category of overseas Pension ‘QNUPS’.

QNUPS or QROPS

A QNUPS must satisfy the same conditions necessary for a Recognised Overseas Pension Scheme (ROPS). The QNUPS difference is no requirement for the country or territory operating a QNUPS to have a Double Taxation Treaty (DTA) with the UK if the scheme is outside of the European Economic Area (EEA). There are also no reporting requirements from a QNUPS to HMRC.

A QROPS will by definition be a QNUPS. But a QNUPS need not be a QROPS because the QNUPS could be in a country or territory without some of the required conditions to satisfy QROPS recognition.

Is there an advantage to QNUPS:

The most obvious advantage is the removal of investment restrictions associated with UK Pensions and QROPS. As detailed previously QROPS remain under strict investment controls irrespective of the time someone is non UK resident. A QNUPS has no such restriction and can freely invest in residential property, fine wines, antiques and other tangible assets which a QROPS cannot.

  • There are no reporting requirements from the QNUPS to HMRC.

Benefits from a QNUPS can be taken as a lump sum and income or a loan or a series of loans.

The benefit of the member paying interest on the loan is that the interest charge removes further wealth from the member’s personal estate.

WARNING!

It appears there are no restrictions on placing personally held assets into a QNUPS but creating this structure purely to avoid tax should ring alarm bells.

In the current economic climate whilst HMRC are extending the Inheritance Tax benefits for UK registered Pension schemes and correctly operated QROPS, it is unlikely the intention is to allow other non Pension assets such as cash, investments and particularly property from a person’s estate to shelter from IHT in a QNUPS.

HMRC are now regularly imposing retrospective legislation. Anyone considering a QNUPS for non Pension assets will undoubtedly be under HMRC scrutiny and should be clear to distinguish between tax avoidance foreseen by the legislators from tax avoidance which exploits loopholes in the law which are likely to be retrospectively closed.  

For more information contact:

info@gerardassociates.co.uk

Tel: +44 (0) 1884 250118

www.gerardassociates.co.uk

Welcome to Gerard Associates

QROPS

UK Pension schemes remain a highly tax efficient method of saving for retirement. The recent addition of flexible and capped drawdown provide additional methods of retaining control of capital in retirement albeit with a 55% death tax charge. However if you retire abroad the additional scope of Qualifying Recognised Overseas Pension Schemes (QROPS) must form part of individuals planning.


Most UK pension funds can be transferred to a QROPS pensions

Advantages of HMRC QROPS

There are various advantages of QROPS; these can be listed as-

  • QROPS comes with tax advantages such as no death taxes once you have been non UK resident for five complete consecutive tax years.
  • QROPS have more flexible investment options.
  • You can also consolidate smaller UK pension funds into one QROPS.

UK Pension schemes remain a highly tax efficient method of saving for retirement. The recent addition of flexible and capped drawdown provide additional methods of retaining control of capital in retirement albeit with a 55% death tax charge. However if you retire abroad the additional scope of Qualifying Recognised Overseas Pension Schemes (QROPS) must form part of individuals planning.

Most UK pension funds can be transferred to a QROPS pensions

Advantages of HMRC QROPS

There are various advantages of QROPS; these can be listed as-

QROPS comes with the benefits of self-investment At retirement age cash and income is paid gross and without any withholding taxes. Similar to the new UK Pension rules you do not need to purchase an annuity at any time.

Help with HMRC QROPS

Planning and carrying out QROPS transfers is not that easy. It is a matter which requires knowledge and expertise in the domain. Hence it is advised that one should consult experienced professional financial advisers for the same. QROPS advice is a specialist niche area requiring knowledge and experience of UK pension retirement and income planning. As a result the support from a professional specifically dealing with UK pensions, pension drawdown and QROPS related schemes will be better suited as it requires the advisor to have a comprehensive knowledge about UK pensions, UK pension drawdown and QROPS schemes.This will ensure a suitable QROPS transfers and ongoing support and servicing.

Professional QROPS advisers can be understood as professional consultants who have full knowledge of UK pension,estate planning, pension drawdown,cross border tax as well as administration of pension transfer. 

QROPS. QROPS will help you control your pension and will also provide you many benefitsthat comes along. Choose the right advisors and remember if you can’t find the individual advisers name on the UK Financial Services Authority (FSA) register then they are not UK authorised and regulated.

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