QROPS – What do Advisers Need to Know?

This article was originally published in Retirement Planner, May 2010

For clients moving or living abroad, UK pension benefits can be neatly transferred to a tax neutral QROPS in a well regulated jurisdiction, such as Guernsey, although QROPS may not be suitable if their intention is to return to the UK at some point in the future.

QROPS – the Benefits

• Simplification of your personal tax position.
• Having been absent from the UK for 5 tax years or more the member should no longer be subject to UK tax on pension payments thus reducing the paperwork related to HMRC reporting requirements.
• Choice of currency for investments and subsequent income drawdown.
• On completion of the transfer members are no longer subject to the UK Lifetime Allowance Charge.