Expats and QROPS


Transferring into a QROPS will offer many benefits to the UK expat. Figures have shown that QROPS holders save thousands of pounds in taxes that could otherwise be claimed by HMRC.

In total it is estimated that around 7,300 UK pensions have been moved into a QROPS since the scheme’s inception, further reports suggest that this figure will rise immensely as QROPS awareness increases.

It is also important to know that transferring an existing UK pension into a QROPS offers much more than just tax savings. Here are some of the other benefits that can come with a QROPS.

An important advantage of transferring into a QROPS is the ability to utilise different currencies. With a QROPS you are not tied to sterling, and QROPS benefits are paid out in gross in the chosen currency of the policy holder. Such practices eliminate issues that can arise with exchange rate problems.

A QROPS enables the holder to gain considerable tax advantages. The main reason behind this is that the QROPS is not based in the UK. QROPS are traditionally based in countries that have low tax legislations, however the QROPS holder is not tied to this country, the holder can reside anywhere in the world (except the UK) and still keep the QROPS in its jurisdiction.

Contrary to holders of a UK pension, those with a QROPS are under no obligation to buy an annuity.

The options that come with regards to your fund after you die are another tremendously attractive facet of the QROPS. A QROPS continues to exist after the event of your passing, and unlike a UK pension you can avoid excessive Inheritance Tax charges. In fact, in most cases you can transfer the entire remaining pot on to your named beneficiaries.

The QROPS is also free from lifetime allowances.

As you can see there are many benefits involved with transferring your UK pension offshore. If you are interested in finding out more speak to a recommended financial adviser for more information.