Do you want to move your UK pension fund?
If you’ve retired abroad, it can be a challenge to transfer your pension fund from the UK to your new place of residence. One possible solution is QROPS, a pension scheme that offers low tax deductions and high convenience.
Here are some of the most frequent questions we receive about QROPS.
What is QROPS?
QROPS stands for “qualifying recognised overseas pension scheme.” It is an international pension scheme that allows you to transfer UK pension funds without substantial tax deductions.
Do I qualify?
You qualify if you:
– have a UK pension fund
– are a non-UK tax resident and have remained so for at least five complete and consecutive years
Can I transfer any type of pension?
A personal pension, whether in payment or not, can be transferred. A company pension can only be transferred if it is not in payment. However, state pensions and lifetime annuities cannot be transferred in any form.
Can I keep my money offshore?
If you have at least £30 000 in UK pension benefits, you can transfer these funds to pension trustees in Malta and Gibraltar. Once your UK pension fund has been transferred to QROPS, you can invest the money.
Can I transfer the money to South Africa?
Yes. However, you would need to transfer the funds to a South African QROPS approved by Her Majesty’s Revenue and Customs (HMRC).
Why should I transfer my pension to QROPS?
Besides for the benefit of being able to receive local advice from a trusted local source, you could save up to 55% in tax upon your death. This means that you would be able to leave a much greater sum of money to your surviving relatives. You would also have greater investment flexibility, as well as lump sum flexibility upon retirement.
When can I access my QROPS funds?
You can access your pension fund between the ages of 55 and 75. Up to 30% of the money will be available to you as a lump sum, with the rest serving to pay out a monthly income.
What are the tax benefits?
– Your pension income will be paid without the deduction of UK tax
– You could leave your pension to your family without paying UK tax
– You do not have to purchase an insurance annuity
– You will have more flexibility and control when it comes to investments
– You have the option of receiving up to 30% of the funds as a lump sum
At Carrick Wealth, we offer wealth and capital management advice. Call us today to find out how you can benefit from QROPS.