First published in the Gibraltar Magazine
September 2008
Anyone reading the international expatriate press in recent
months may will have come across a curious 5 letter acronym
– QROPS. What is it and why should it be considered by
anyone who has left the UK for foreign climes? This article
attempts to explain QROPS and perhaps along the way may debunk some
of the myths and misleading information that has been
published.
On moving abroad many British expatriates will have left their
UK pension rights retained in their existing arrangements. These
private pensions remain subject to UK pensions law with the
effective requirement to purchase an annuity at a later stage (and
in any case no later than attaining 75 years of age without the
later prospect of huge tax charges otherwise). Additionally UK
taxation may be suffered on pension payments. Annuity rates are at
historic lows and of course this has been exacerbated this year
following the turmoil experienced in the
