QROPS is an overseas pension scheme that can provide a great retirement solution
, provided it does not break the strict rules laid down by the UK HMRC. QROPS can be started by anybody who has UK pension rights and looking to retire overseas permanently. This is for those who are UK taxpayers and intend to or have already moved away from UK. It is even for those who are international workers and returning to another country or their home.
It is a viable option for those who have passed their residency tests and pension rights are eligible to take advantage of this flexible tax effective investment option that allow a UK pension fund a broad scope of commodities, currencies and markets that are not open to an investor of UK pension. These QROPS are both managed and self-invested.
A QROPS pension scheme can be established in any country outside the UK, but the main criterion is that it must full comply with the rules and parameters set by the HM revenue and customs. The advantage of this pension scheme is that it can be set up in one country while the member of this scheme can reside somewhere else. This enables the pension fund to grow in a country where there is low tax jurisdiction and the benefits can be paid to the investor in any major currency in another country where the income tax rate is low.
QROPS was launched in the month of April, in the year 2006. It was a new legislation rule which was primarily designed to simplify pensions. The jargon of the name indicates:
Qualifying - that the pension scheme meets all the requirement of the HM revenue and customs rule for QROPS.
Recognized that it is governed by the tax authorities in the country where it is based Overseas that it is based outside the territory of the UK
Pension Scheme it is a monetary scheme which provides benefits to individuals in the event of their retirement, death, attaining a particular age and suffering from incapacity or serious illness. UK pensions are eligible to get transferred into Qualifying Recognized Overseas Pension Scheme provided the fund has not been used by the saver to buy an annuity. It is better to take advice from expert advisers because they have all the information about QROPS and how it works and other minute details.