What is QROPS? A QROPS is a Qualifying Registered Overseas Pension Scheme. This is a UK HMRC approved scheme whereby you can transfer your UK held pension into a pension scheme overseas which could have significant financial and operational benefits for you.
Before you consider transferring your pension overseas you must confirm;
- You have not yet taken an annuity from your pension
- That you hold an existing UK domiciled pension
- Intend to live outside of the UK for 10 years or more
The Benefits of QROPS
- Zero currency risk
- Low management costs
- Greater investment options
- Low taxation
How do QROPS work?
For you to transfer your pension into a QROPS it must be HMRC approved, for a list of current approved schemes click here; http://www.hmrc.gov.uk/PENSIONSCHEMES/qrops.pdf.
The scheme must be taxed and regulated in the jurisidiction in which it is registered. You will then be liable only for the tax and regulations of that country. You will no longer be required to pay tax in the UK on the pension and its benefits, however you will still be required to report back to HMRC for 10 years on the status of your pension.
For more information on what QROPS are and how it could benefit you, please contact one of our Australian QROPS experts here.