In times of economic uncertainty it is important to know you are in full control of your finances, especially if you live abroad and have a UK-based pension. The Qualifying Recognised Overseas Pension Scheme (Qrops) does exactly that by letting you transfer your pension and choose where and how your hard earned money is invested.
The scheme has significant financial benefits for anyone with a UK pension who has moved abroad or is intending to do so in the near future. With the help of professional financial advice it can be possible to pay less tax at source or even to pay none at all. And, unlike UK pension funds, any assets that remain after your death can be passed on to your family.
Control over assets
The key principle behind Qrops pensions, and the one that makes them so attractive to investors, is that your money belongs to you and you retain full control over it. Whereas a UK pension requires an annuity to be purchased on retirement, which cannot be left to your children, Qrops pensions are based on an asset management plan which can be personally designed to suit a person’s lifestyle and expectations.
Under the terms of Qrops a UK pension can be transferred to a recognised scheme in a jurisdiction of your choice. In some places this can mean the pension is totally free of tax at source. The funds are invested in a plan that is carefully constructed to reflect the balance you wish to strike between risk and growth, so professional advice is crucial to ensure you get the best possible return.
One of the main advantages of Qrops for UK residents who retire abroad is the flexibility it provides. Because you choose the jurisdiction in which it will based, you can ensure you are getting the most advantageous tax benefits available. And, if there is a shift in the economic climate or a change in your circumstances, you can move your investment to a fund that is more likely to deliver the results you expect.
These are just some of the benefits. Depending on the jurisdiction and the fund you choose you could also take advantage of higher fixed deposit rates, the increased confidentiality that comes with offshore accounts and a facility to take a tax free lump sum from your pension fund.
There is no stipulated minimum amount for setting up a scheme, but the start-up costs involved mean it only really comes into its own with funds of £25,000 or more. The biggest benefits, however, are realised with funds of £100,000 or more which allow for greater flexibility in your investment portfolio choice.
Whichoffshore provides professional expatriate information on offshore estate planning, QROPS pensions and more, in order to help British expatriate make the most of their money. For more information, please visit – http://www.whichoffshore.com/