QROPS: Transfer Your UK Pension to an Offshore Pension Fund

QROPS is an abbreviation for Qualifying Registered Overseas Pension Schemes

. It is a program that allows UK pension holders to transfer their funds to an offshore pension fund. This is a great way for UK expats to minimize their tax liability and get their pensions anywhere in the world.

There are some restrictions on the types of pensions that can be transferred. Some of the pensions that will qualify are occupational or company pensions, SSAS or Small Self Administration of Pension Schemes, unsecured pensions, or income drawdown, just to name a few. The pension must also meet certain standards set by HM Revenue and Customs. A list of QROPS that qualify are listed on their website.

You don't have to buy an annuity with QROPS, either. You're eligible to take a lump sum payment. For many people, this is one of the best benefits of this type of account. You can also pass it along to your children or another designated beneficiary. This is something you can't do with a standard pension. Payment can be made in pounds, Euros, or US dollars or you can have it sent to the country where you live and withdraw it in the currency you need. This can save you a lot depending on the currency exchange.

QROPS don't have an upper maximum lifetime limit. This, too, is different from standard pensions. The tax advantages can be significant, as well. You will need to speak with a qualified tax professional to see what tax benefits you are eligible for.

Another advantage of QROPS is the freedom you get for investment purchases. You aren't tied to someone else's idea of what a good investment. If you want to purchase real estate, you can. Once your pension is transferred over to QROPS, you're free to do what you want with your money. This is one of the major appeals of this type of account.

While you must apply to the HM Revenue and Customs to transfer your pension over to a QROPS, it's not as difficult as it might sound. However, there is a specific process that must be followed, so you may want to talk to a company that specializes in QROPS to ensure you follow all the laws in place regarding the transfer.

Another advantage is that this type of fund allows you to give your children an inheritance when you pass on. Pension funds don't let you do that. For those concerned about the financial welfare of their family after they pass on, QROPS is one answer that you should definitely look into.

In closing QROPS offers many advantages over standard pension plans. If you plan on moving overseas after you retire, it's certainly worth a look to see if your pension will qualify. Why have your pension funds tied up in a country you no longer live in? Check with an established, trust-worthy company to find out if your pension qualifies and what the advantages will be for you and your family.

QROPS: Transfer Your UK Pension to an Offshore Pension Fund

By: Vikram Kumar

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