A Qualifying Recognised Overseas Pension Scheme (“QROPS”) allows individuals who live outside the UK, or are intending to leave the UK, to transfer their UK registered pension into an approved offshore pension scheme without deduction of UK tax.
For those individuals that qualify for such a pension, a QROPS plan can provide greater flexibility, improved tax efficiency, and a wider choice of investment for retirement planning.
The GlenQ Overseas Pension is written under a deed of trust subject to Jersey law and is available to both Jersey resident and non-resident members. It has approval from the Jersey Comptroller of Taxes and is recognised by HMRC as a QROPS.
Advantages of QROPS
- No limit on contributions.
- No need to have employment (relevant) income to make contributions.
- No reporting requirements to HMRC.
- Can be funded by contributions and transfers from an international pension.
- No UK Income tax on non-UK source income from investments.
- No lifetime limits on fund size.
- Flexible investment criteria, directed by the member.
- QROPS may avoid local succession law.
- Pension may be paid at UK retirement age (currently 55).
Who Would Consider a QROPS?
- Expatriates saving for their retirement or who may wish to return to the UK in the future.
- High net worth UK residents who intend to leave the UK in the near future
- Anyone wishing to transfer from an existing International Pension Plan when they reside outside the UK.
Taxation on Benefits paid by a QROPS
- The possible benefits on retirement potentially include a lump sum payment equivalent to 30 % of the fund, benefits on incapacity and early retirement and death benefits.
- If a member is Non-UK resident on retirement, there will be no UK tax payable but the member may be taxed in the jurisdiction in which they reside.
- No requirement to purchase an annuity.
Taxation of the QROPS
- Outside scope of UK income tax in most cases.
- No Capital Gains Tax.
- No UK tax on chargeable gains made by the QROPS.
- UK Inheritance tax would not normally be charged.
- QROPS can be used by many individuals with an international focus as a flexible mechanism for providing retirement benefits.
- It is important contributions made are proportional, both to overall wealth and existing pension rights.
WHY CHOOSE GLENQ?
Nothing is more important to us than your satisfaction with our Recognised Overseas Pension scheme. GlenQ will work tirelessly to ensure your expectations are met.
With this in mind, we always place the highest possible value on customer service, delivered professionally, with determination and honesty.