A QROPS is specifically designed to enable transfer of accrued UK pension benefits for individuals who have left/ or plan to leave the UK. A QROPS must be approved by the HMRC and has strict reporting and regulation requirements to HMRC during the first 5 full tax years of leaving the UK.

Key Features

• It accepts transfers from any type of UK Registered Pension Scheme (RPS) including Occupational Pension Schemes, PPP, SIPP, Protected Rights and Drawdown contracts.
• Benefits can be paid as a lump sum (% tax free dependent upon jurisdiction) or as a flexible regular income stream (usually from age 55 onwards).
• No requirement to purchase an insurance annuity or go into an alternatively secured pension at 75.
• Benefits may be exempt from Inheritance Tax (depending upon jurisdiction).
• Once transferred, benefits and any growth will no longer be subject to the Lifetime Allowance.
• Transfers of Non-protected benefits above the Lifetime Allowance are subject to a 25% tax charge, as opposed to 55% if taken as a lump sum within the UK rules.#
• Highly flexible, open-architecture investment is available to suit an individual’s attitude to risk - potential for tax free roll up.
• Taxation of retirement benefits paid is dependent on the jurisdiction of the QROPS and the tax residence status of the employee.
• Some QROPS will permit transfers back to the UK if personal circumstances change.

The HMRC currently approve over 1,500 QROPS. The majority of schemes are located in countries such as Guernsey, Isle of Man, Hong Kong and shortly Malta. The limits/ taxation rules will vary upon jurisdiction.

Launching in early 2010 is the Dominion QROPS based in Malta.

If you would like to discuss QROPS please speak to Andrew, Ben or Stacy on our Wealth Management Team.