What is QROPS?
A Qualifying Recognised Overseas Pension Scheme is an HMRC approved overseas pension scheme that can receive transfers of UK pension assets. QROPS has become a compelling option for people living overseas that are no longer contributing to their UK pensions and wish to liberate frozen assets from corporate final salary and defined contribution schemes.
Why would I use one?
Using a QROPS increases investment control, flexibility and can also reduce taxation on both income and death. UK pension funds are currently taxed up to 45% on income and on death after the age of 75 years old. QROPS can help you avoid UK taxation (subject to being outside of the UK for 5 years), have the income paid anywhere in the world when you want it, access a 30% tax-free lump sum from age 55 (now known as PCLS), and select the beneficiaries of your choice.
Is it for me?
Although it’s a compelling option, the decision to transfer pensions requires serious consideration. UK pension legislation now requires anyone transferring a defined benefit scheme to have a suitability report produced by a professional regulated by the Financial Conduct Authority, in addition to their country of residence. This ensures you are fully aware of the benefits and sacrifices you are making. Allowing Investro advisors to manage the process for you from beginning to end, you’ll enjoy your pension where and when you want it and enjoy peace of mind knowing you’ve been fully informed.
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- QROPS Fact Find