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Pension and tax rules can change and tax relief depends on your personal circumstances. This information is not personal advice. Investments go down in value as well as up so you could get back less than you invest. If you’re not sure which investments are right for you, we can put you in touch with one of our financial advisers.

Important

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A QROPS (Qualifying Recognised Overseas Pension Scheme) is a type of pension scheme available for individuals who have accrued pension savings in the UK and are either planning to move abroad or are already living outside the UK. It allows these individuals to transfer their UK pension funds into an overseas pension scheme that meets certain qualifying criteria set by HM Revenue & Customs (HMRC), the UK tax authority.

What is a QROPS ?

Transferring Pension:

 

When someone leaves the UK but has a UK pension, they can transfer it to a QROPS. This transfer is beneficial for individuals who want their pension funds managed in the country they reside in or want to consolidate multiple pensions into one scheme.

  1. Tax Advantages: QROPS can offer tax advantages to non-UK residents. Depending on the country where the QROPS is based, it may offer favorable tax treatment on pension income, lump sums, or even inheritance tax benefits. However, it's crucial to consider both the UK and local tax regulations as they apply to QROPS.

  2. Investment Flexibility: QROPS typically provide greater investment flexibility compared to some UK pension schemes. They may allow a wider range of investments, enabling the individual to have more control over where their pension funds are invested.

Benefits for Expatriates:

  • Currency Control: QROPS can be denominated in different currencies, which can be advantageous for those living outside the UK. It helps to manage currency risks and avoid fluctuations that could affect the pension value.

  • Local Regulations: QROPS can adhere to local rules and regulations, which can simplify the management of the pension fund in a foreign country.

  • Estate Planning: QROPS can offer more flexibility in terms of passing on pension benefits to beneficiaries upon death. Some QROPS may have inheritance advantages, allowing the remaining pension to be passed on to heirs with reduced tax implications compared to UK pension schemes.

Considerations: