QROPS (qualifying recognised overseas pension scheme) is a relatively new directive from the UK government and so far, has become a successful transition for many. If you are considering this move finding a QROPS Help Centre with experienced professionals at hand, to provide a simple explanation with regards to what can and cannot be done, will be a step forward in the right direction.
HMRC Directive – The Basic Purpose
The basic purpose of QROPS is to allow any former UK resident to be able to transfer money paid into a UK pension scheme abroad. This is a big bonus for anyone who is living and working outside the UK and intends to stay abroad permanently.
Which Countries are Included?
The short answer to that is not all of them. For HMRC to transfer the funds a country it must be approved – and to be approved it needs to meet certain criteria. To find out which countries do meet the criteria you can consult the UK governments “recognised overseas pension schemes notification list”. If your country is on it, this might be the time to consult those professionals who can provide specialist impartial advice with regards to whether you are eligible.
Why Contact a QROPS Help Centre?
If you are considering permanently residing in another country the making an appointment at a professional QROPS Help Centre is a step in the right direction. An appointment can be made online and they will arrange for a professional advisor to call you back. In the first instance, they will give you all the information you need with regards to the basic idea behind QROPS. If the idea suits, they can provide a full assessment as well as TVA (transfer value analysis) report. These reports are essential to have before making any changes because with this you have a realistic idea of what your UK pension is worth in the country you are planning to transfer to.
Requirements & Benefits
There are certain requirements and limitations placed on QROPS. The minimum retirement age is 50 (before 06/04/2010) and 55 (after 06/04/2010). Expats will be exempt from the lifetime allowance charge currently applied to the pensions of those resident in the UK. Another benefit is that with QROPS there is no obligation to buy annuity or an ASP (Alternatively Secured Pension) once you reach seventy-five, and no liability with regards to paying UK tax on your pension.
With QROPS it is possible to leave a lump sum to your heirs without that money being notably restricted as it would be in the UK. This is not always the case, but it is certainly possible – A lot depends upon the country to which the pension was transferred.
If you want some straight talking simply contact a reputable QROPS help centre and get the ball rolling – Guaranteed, they will quickly take all the “guess work” out of it and give you the sound and simple advice most people need and appreciate.