QROPS Pensions (Qualifying Recognised Overseas Pension Schemes)

Make more of your UK personal pension fund with a QROPS Pension

Paragon Wealth Solutions work with a panel of QROPS Pensions experts who offer independent advice and carefully analyse your pension and requirements. In addition, they will only offer solutions that suit your personal financial ideals.

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Get the most from your UK pension plan with a QROPS Pension Transfer

Qualifying Recognised Overseas Pension Schemes (QROPS Pensions), are designed to enable British expats to move their pension plans to an overseas jurisdiction. As a result they could enjoy minimal, or even zero tax rates, greater income potential and increased financial freedom.

QROPS Pensions are pension schemes based outside the UK. These are recognised by HMRC and regulated as a pension scheme in the jurisdiction in which it was established.

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What is a QROPS Pension?

QROPS Pensions are designed for those living or working in the EU, who still have a UK private pension. As such they give the pension holder the ability to have greater control over their fund and to take advantage of tax rates lower than those of British-based pension schemes.

To be eligible for a QROPS, you must be aged 18 or over and hold a UK private or company pension. However, a state pension will not be accepted, nor will a pension which is already linked to an annuity.

About QROPS Pensions

Qualifying Recognised Overseas Pension Schemes help to enable expats to transfer pension arrangements from the UK to an overseas jurisdiction where where they can enjoy minimal or even tax free rates

Therefore, if you live in an EU country, or are planning to do so in the near future, transferring your pension to a QROPS could allow you the freedom and flexibility you need.

Benefits of QROPS Pensions

Thousands of British expats have switched their pension pot to a QROPS, enjoying benefits including:

  • All your money goes to your loved ones upon death
  • Take a lump sum of up to 30%, tax free at source
  • Income from your pension is taken in a more tax efficient way
  • Take your pension aged 55
  • Receive your pension benefits in the currency of your choice
  • No need to purchase an annuity, or pay UK charges upon death
  • There is potential protection of the fund on any creditors or in the case of a divorce
  • If you have a fund of over £1million there is no lifetime allowance charge which is 55% in the UK on funds in excess of £1million

Our QROPS service

We work with a panel of financial advisers who are experts in the overseas pension market. Above all they offer you impartial, no-obligation advice and a service of the highest possible quality.

Are you looking for a QROPS pension service which can help you achieve your personal objectives?  Do you want a professional service with all the help and support you need? Then get in touch with us today and see how our advisers can help you to the right options for your pension.

Our QROPS Pensions team will also help you consider

• The protection and compensation schemes available from the bank or institution selected

• The effect of currency. Do you continue to have your pension in GBP? Perhaps in the currency of your residence, maybe EUR or USD? Is a blended approach best?

Age you can access your pension

%

Potential tax savings

%

Lump sum, tax free at source

 

  
 
UK Income Tax
Tax charge on death
Tax free pension lump sum
Inheritance tax
Lifetime allowance
Protection of assets from creditors/divorce
Currency options
Investment options
Requirements to buy annuity

QROPS

Pension
UK Income Tax : From 0%
Tax charge on death : 0%
Tax free pension lump sum : Up to 30%
Inheritance tax : Exempt
Lifetime allowance : None
Protection of assets from creditors/divorce : Yes (potentially)
Currency options : All
Investment options : UK and international funds
Requirements to buy annuity: Never

UK

Pension
UK Income Tax : Up to 45%
Tax charge on death : From age 75
Tax free pension lump sum : 25%
Inheritance tax : Exempt
Lifetime allowance : £1million*
Protection of assets from creditors/divorce : No
Currency options : Sterling in the virtually all cases
Investment options : UK funds
Requirements to buy annuity: In some cases

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Discover all of the facts on the choices you have to making the most of your pensions when you leave the UK

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QROPS Pension Frequently Asked Questions

Does my QROPS have to be in the country where I live?

No. A QROPS can be held in a different jurisdiction to the country where you live. There are a variety of benefits to different QROPS jurisdictions. Therefore, the decision should be based upon your personal circumstances.

Malta and Gibraltar are two of the most popular QROPS destinations.

When can I take my QROPS pension?

You will be able to access your QROPS pension at 55.

Will I need to take out an annuity?

It’s not crucial to take out an annuity. But, taking out an annuity does have a number of tax advantages.

Can I take 100% of my QROPS fund as a cash lump sum?

You can take all of your fund as cash but you will pay income tax according to the country you live in. Above all, most of the QROPS schemes we recommend offer a minimal rate of tax.

Could I be unsuitable for a QROPS transfer?

If you have guaranteed annuity rates on your personal pension plan then this may not make a transfer suitable. Secondly, If you are a UK resident, then a QROPS will be not be suitable.

Would I be able to organise a QROPS transfer myself?

No, That is to say, QROPS Trustees will only accept a transfer through their appointed qualified intermediaries.

What is the minimum amount of funds I can transfer to a QROPS?

We recommend that your pension pot has at least £50,000. To clarify, this is to take full advantage of QROPS status.

I have a final salary scheme, should I consider QROPS?

Final salary schemes offer a high level of guaranteed benefits, are usually index linked and provide death benefits for widows and widowers.

However, they are very rigid in their structure, as such there are a number of advantages in moving to a QROPS. But, it is very important to ensure a like for like comparison is carried out to compare the two options.

Can I transfer my State Pension Scheme?

No, QROPS are for private pension arrangements only. Government regulations prohibit the transfer of UK State pensions.

Get in touch…

Do you want more information about your wealth management options? Get in touch today and see how you can make the most of your UK pensions, savings & investments

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11 Station Rd,
Horsforth,
Leeds LS18 5PA

00 44 20 3667 4615

enquiries@wealth-management.net

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