Well, QROPS simply stands for Qualifying Recognised Overseas Pension Scheme. In other words, if you hold a pension in UK and wish to settle abroad, you can transfer your UK pension into a qrops pension.
To the uninitiated, the pension laws of UK were mostly characterised by several restrictions. These restraining laws provided an easy means for the government to maintain their tax earnings from pension funds. It was impossible for a retiree to use up his pension money within first five to ten years of retirement.
The winds of change blew in 2006 when some of the regulations were lifted on overseas pension transfers. With government approval, it got easy to move one’s pension to a qrops scheme.
How to qualify for qrops? Well, just see if you have been a UK non-resident for at least five years to qualify for this new pension scheme! Getting a qrops allows you to save on your tax bills. It is good news that your pension funds will be exempt from UK tax laws, though you will be required to honour taxes in your qrops jurisdiction.
One of the many advantages of this tax-friendly scheme is that you can decide the currency in which your pension will be held. Normally, you will suffer on two fronts if you are a UK pensioner planning to settle abroad. First, your funds in British currency will be subject to global exchange rate fluctuations in case you withdraw them abroad. Secondly, your bank will impose certain fee for transferring and exchanging your money into another bank account. With qrops, you can avoid these issues by choosing the same currency for your pension that you spend on an offshore location.
However, qrops pension can make your day only if you reach out to experienced qrops professionals. They are specialists who can, not simply advise you but also set up a type of overseas pension scheme most beneficial to your needs. If you wish to avoid substantial taxation cuts in UK as well as in a qrops jurisdiction, it is best to get in touch with qrops service providers.
Today the market of pension schemes is flooded with various qrops vendors who may not always have the requisite credentials and depth to help you with a winning solution. To get the best bang out of a qrops pension scheme, it is important for you to navigate to competent and HMRC approved ((Her Majesty’s Revenue and Customs) qrops pension providers. A good professional will not only offer you a free assessment but also inform you about the current benefits you are getting along with anticipated rewards should you decide for a qrops.
Before you decide to hire a specialist, it is good to make a valuation of your current pension. Based on your current pension situation, a qrops may or may not be an advisable course of action for you.