Qualifying recognised overseas pensions scheme - A Guide to Taking Your Pension Overseas

Qualifying recognised overseas pensions scheme - A Guide to Taking Your Pension Overseas

Qrops - qualifying recognised overseas pensions scheme is a great way to transfer your pension from the UK overseas. It will give you much better control and tax breaks so you can benefit from your new life outside of the UK.

Qualifying recognised overseas pensions scheme Benefits

Here's the main reasons to transfer your retirement fund into an expat pensions :

You can make your withdrawals and payments at a much lower rate of tax compared to leaving your retirement pot in the UK.

You get more options to manage your scheme and assets.

You will get your payments in the local currency

No annuity required, so if you should die with payout remaining, you don't pay UK payments and can leave all to your beneficiary.

You are not restricted to choosing a scheme that is based in the country you're planning to move to, give you much wider choice

How Qualifying recognised overseas pensions scheme work

They are an HMRC approved expat pensions to help expat retirees avoid certain UK taxes normally levied on UK retirement pot.

It operates by letting the qrops - qualifying recognised overseas pensions scheme to be registered in any other place , and then, after five years of your new scheme being registered, you can stop paying any applicable UK taxes and only be liable for payments levied in that country. By choosing a fund that is based in a country with lower payments than the UK, then this is where savings are made.

Downside of QROPS

These schemes need to be approved by HMRC, and they reserve the right to remove their approval if they feel the fund in any way breaks their agreed terms.

If this happens to a Qrops - qualifying recognised overseas pensions scheme that you're registered with, then you will loose all the benefit of the fund and be liable for UK penalty fines for having transferred your retirement fund outside of the UK.

The best way to avoid this is to always follow the advice of a qualified and respectable IFA .

Transferring Your retirement fund

The most common way to move your retirement fund overseas is to liquidate all your assets before the switch. This makes things run a lot more smoothly.

This stage normally takes two to three months from the time your unbias advisor has been given the power to deal with your account.

Once your pension pot has been transferred you will still pay taxes to HMRC for the first five years. After that time you're then freed from UK charges and only liable to pay taxes charged by the country where your QROPS is based, and any local taxes in your new country of residence.

Conclusions

These fund make great sense if you're planning to retire overseas because after the initial five years, you're not liable for any UK-based taxes, and get greater control and freedom over how you use your pension .

The only real downside is that, if chosen carelessly, your plan could get penalised by HMRC and lose its privileges. There are many legitimate, long running and proven plan out there, so to avoid this happening it's important you always consult an unbias advisor first

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