We provide transfer and investment advice on Qualifying Recognised Overseas Pension Schemes (QROPS) and also for Self Invested Personal Pensions (SIPP’s).
We find most of our Customers would benefit from a transfer into a QROP’s, for some depending on circumstances, SIPP’s may be the best option.
Since 6th April 2006, there is a simple way for those intending to retire abroad to move their preserved pensions offshore. There can be significant tax advantages in doing so.
Your individual circumstances including your intended country of residence on your retirement, the age at which you want to draw benefits and your family situation are all important in giving advice.
We consider Guernsey to be generally but not exclusively, our preferred choice of jurisdiction as they have a zero local income tax and inheritance rate. As UK pensions are taxed at source, depending on your chosen retirement location, this can lead to significant tax savings. Additionally, after taking your lump sum, the UK has a special rate of Inheritance tax for pension of 35% (55% from 6 April 2011) and so moving to a nil tax jurisdiction is a significant advantage.
There are many additional potential advantages of QROPS including;
- No requirement to purchase an annuity with an insurance company on retirement
- Income paid gross so not subject to taxation at source in the jurisdiction as long as non-resident
- Ability to draw income at any time whilst moving to a much more advantageous position on death and saving Inheritance Tax in certain circumstances.
- Tax advantages and guarantees provided by offshore investments, whilst remaining under the comfort of the UK regulatory framework
One of our preferred QROPS product providers is Gower Pensions Management who run the Horizon International Pension Plan (HIPP) as they have many years of experience as a Guernsey trust company and subsequently QROPS.