In potentially the biggest changes to the rules, for transferring UK pension benefits overseas, since the original introduction to the QROPS rules – which commenced on 6th April 2006 – the new proposed legislation will affect all QROPS jurisdictions, existing QROPS schemes and both new and existing members of QROPS from 6th April 2012.

The change, that affects the popular QROPS jurisdiction of Guernsey, is the introduction of “Primary Condition 4” – which has been included in both the draft Statutory Instrument and in the new QROPS application form APSS251.

This new condition stipulates:

“Where an exemption from tax in respect of benefits paid from the scheme is available to a member of the scheme who is not resident in the country or territory in which the scheme is established, the exemption must—
(a) also be available to members of the scheme who are resident in the country or territory; and
(b) apply regardless of whether the member was resident in the country or territory—
(i) when the member joined the scheme; or
(ii) for any period of time when they were a member of the scheme.
For the purposes of this condition “exemption” means any exemption available under the system of taxation of personal income in the country or territory in which the scheme is established other than an exemption which applies by virtue of double taxation arrangements.”

The impact of this new condition will mean an overseas pension scheme (that has QROPS status) will have to offer exactly the same tax regime to its members in their jurisdiction as to those outside of the jurisdiction.

This is currently not the case for resident and non-resident members of Guernsey QROPS where tax treatment of income paid from the scheme is different.

Please see the link to the article: http://international-adviser.com/news/uk/uncertainty-over-qrops-legislation

Global QROPS Ltd quoted in International Adviser is a post from: Global Qrops

This is being held in Guildford, Surrey on Saturday 20th August 2011 and we would like to offer you the opportunity to attend. Global QROPS will be providing specialised insights on transferring pensions to New Zealand – as well as other financial aspects that need to be considered when migrating to New Zealand.

As well as pension transfers to New Zealand, you will also have a chance to obtain valuable information on New Zealand visas, job opportunities in New Zealand, removals, pet shipping, banking and foreign currency exchange.

This seminar is ideal for people in the construction industry, such as Quantity Surveyors, Civil Engineers, Construction Project Managers, Architectural Builders, Estimators, Building Inspectors, General Builders – residential and commercial, Carpenters, Joiners, Draughtsmen, Quantity Surveyors, Plumbers, Gasfitters, Roofers, Bricklayers, Electricians and Welders – all of whom are looking for a fresh start in New Zealand.

The seminar is also ideal for people that work in the IT sector, such as DBA – SQL, Intermediate to Senior Level, Developers – Java and .Net, Datawarehouse and BI Consultants, Sharepoint Developers/Administrators, Experienced Test Analysts and Performance Test Engineers, Mid Level Business Analysts and Lead Business Analysts., MiddleWare and Websphere Consultants, Expert level VMware Consultants and Mobile App Developers – Intermediate and up.

If you would like to book a place at this event, please contact Global QROPS at our email address, which is: info@globalqrops.com or telephone our office on 01372 724249.

Spaces will be limited, therefore, if you are interested please contact Global QROPS at the earliest possible opportunity.

Live and Work New Zealand Migration Seminar – Featuring Global QROPS is a post from: Global Qrops

As already established, QROPS in the Isle of Man underwent a major change, earlier this year, when the withholding tax on income paid from their QROPS scheme (at a rate of 20%) was withdrawn.

Further to this change, the Isle of Man has looked at the possibility to increase the tax free cash entitlement, to overseas residents who are members of their schemes – within the existing QROPS legislation.

Already in existence, on the Isle of Man QROPS, were rules allowing for a tax free cash lump sum at 30% of the QROPS fund value, for members at retirement – providing they have been outside of the UK for at least 5 complete UK tax years. This potential 30% was already more attractive than the 25% of the funds value available from a UK money purchase scheme and the 25% of the funds value available in some other QROPS jurisdictions.

In addition to the standard 30% tax free cash, Isle of Man QROPS are looking to pay tax free cash on any growth on top of the balance 70% of the UK pension fund initially transferred in. This option is only available after the 5 year QROPS reporting period. This has come into effect from 22nd October 2010.

Please see the link to the Financial Times article:
http://www.ftadviser.com/FinancialAdviser/Pensions/News/article/20101111/ca8a8e64-e81b-11df-b25f-00144f2af8e8/Manxs-Qrops-entry-to-start-competition-of-offshore-centres.jsp

The expert team of advisers at Global QROPS Ltd will be happy to answer any further questions on this subject.

Global QROPS comments in the Financial Times Adviser is a post from: Global Qrops

The article is centred around UK expat pension members and the most popular destinations for both the individual and their pension. Please see link to article below:

http://www.ft.com/cms/s/2/107e36a4-5a06-11df-acdc-00144feab49a.html

UK expat pension members have, since 6th April 2006, the opportunity to transfer their pension to a QROPS (Qualifying Recognised Overseas Pensions Scheme). Before, 6th April 2006, if you were a UK expat pension member, the only opportunity to transfer your pension overseas would be if your overseas employer, in the country you were resident, accepted pension transfers in.

The introduction of the UK’s overseas pension transfer rules, in April 2006, means that a UK expat pension member can transfer out of their UK scheme to a different jurisdiction to the one where they are residing – providing the receiving scheme is a QROPS.

For someone living in Australia, a pension transfer to Australia is possible (as it was before 6th April 2006) but, as outlined by Global QROPS Ltd in the Financial Times article, an individual has to be aware of the local rules of the scheme before transferring their UK pension across. This is no different for someone living in Australia looking at a UK pension transfer to Australia.

The tax free nature of the benefits of an Australian scheme (that is a QROPS) in payment, can not be ignored for UK expats retiring in Australia – but nor can the limit on the amount that can be transferred in to Australia each tax year, as well as the exchange rate and other Australian tax issues that an individual may be unfamiliar with.

Advice from UK experts, such as Global QROPS Ltd, should be sort by those looking at pension transfers overseas.

Global QROPS Ltd Quoted in the Financial Times is a post from: Global Qrops

On ‘A-Day’ (6th April 2006), UK Pensions Simplification was launched and with it QROPS.

Although the QROPS legislation addressed many points, such as permitted retirement levels, tax free cash levels, overseas scheme criteria and QROPS reporting requirements – the QROPS rules did not cover the UK IHT (inheritance tax) situation with funds held in overseas schemes. In other words UK pension funds, transferred to an overseas scheme (approved as a QROPS), could be subject to the UK’s IHT rules.
On 15th February 2010, Statutory Instrument 2010/051 – The Inheritance Tax (Qualifying Non-UK Pension Schemes) Regulations 2010 – was introduced to confirm that UK pension funds, transferred in to an overseas scheme, would not be subject to IHT. Furthermore, these rules were backdated to 6th April 2006.
As a result, all QROPS can be considered QNUPS (Qualifying Non-UK Pension Schemes) for UK IHT purposes. However an overseas scheme can meet the QNUPS criteria without being a QROPS.
Although a QNUPS (that is not a QROPS) can not receive transfers in from approved UK schemes, it can provide IHT planning opportunities.
The article attached, from leading UK overseas pension transfer specialists Global QROPS Ltd, explains the introduction of QNUPS:
http://www.moneymarketing.co.uk/channels/retirement-strategy/a-question-of-qnups/1011270.article

QROPS and QNUPS is a post from: Global Qrops

According to the article in the FT Adviser, which quotes Global QROPS Ltd’s opinion on the subject, Gibraltar may not be far away from being re-instated as a jurisdiction.

Please see link which includes our comments:

http://www.ftadviser.com/FinancialAdviser/Pensions/News/article/20100218/1b77c72e-1a4f-11df-b0bd-0015171400aa/Qrops-dispute-coming-to-an-end-London–Colonial.jsp

The dispute that had led to the initial suspension of UK pension transfers to Gibraltar QROPS, surrounded the ‘zero rate’ of tax from pension payments in Gibraltar. This was not regarded as a ‘progressive’ rate of tax by HMRC thus putting into question the status of the Gibraltar as a suitable jurisdiction for QROPS.

Gibraltar has been working hard to satisfy the conditions that HMRC would like them meet in order to continue as a QROPS jurisdiction. This would be an immense relief to many transferring UK pension members who’s pension transfer may  have been left in limbo as a result of the suspension.

Global QROPS Ltd will up date our news items with any further details, as and when it is officially announced, that Gibraltar is back on track and that UK pension transfers to their schemes can commence.

Global QROPS Ltd latest on Gibraltar QROPS is a post from: Global Qrops

A study by a leading UK Self Invested Personal Pension (SIPP) provider suggests that there is an increase in overseas pension transfers over UK pension transfers to a SIPP (for example) because of the steep UK tax charges on death whilst in Alternatively Secured Pension (ASP).

Once a UK pension member reaches the age of 75, they will be required to take pension benefits (if they haven’t already). Since 6th April 2006 (A-day), as an alternative to purchasing an annuity with accrued pension funds, a UK pension member can go into ASP – which is a form of pension income drawdown, paid from the fund. ASP was introduced as an ‘alternative’, to buying an annuity as certain religious groups objected, on moral grounds, to the concept of annuities.

One of the main problems with ASP is, once it has commenced for a member, the death benefits are severely restrictive for beneficiaries. In short, if a beneficiary was to receive death benefits as a lump sum from a deceased member of a UK pension, who was receiving benefits in the form of ASP, a tax charge as high as 82% could apply to the fund.

UK expat pension members, in retirement, have the option to transfer to a QROPS. The study suggests that many consider this as, once the 5 year reporting period falls away, the local rules of the QROPS scheme, for tax on death benefits, apply and not the UK’s rules. This could lead to the removal of the ‘82%’ tax charge on death, for beneficiaries.

Whether this is the main reason for a UK pension transfer to QROPS is by no means certain, however, it is definitely a consideration.

Please see link to the article: http://www.moneymarketing.co.uk/£500m-transferred-to-qrops/1005325.article

Global QROPS Ltd quoted in Money Marketing regarding ASP and QROPS is a post from: Global Qrops

 QROPS have been an essential part of retirement planning, especially for people who are migrating, since 6^th April 2006 – when they first came into effect.

QROPS are essentially overseas pension schemes that are approved by the UK’s Her Majesty’s Revenue and Customs (HMRC) for receiving UK pension transfer funds. The Global QROPS Ltd advisory team have been advising on UK pension transfers to overseas schemes since before QROPS were first introduced, in the Finance Act 2004, and have been advising clients and assisting other financial advisers on QROPS from their launch to the present.

Global QROPS Ltd was established with the specific purposes of providing QROPS advice and our launch has been covered in the international financial press:  http://issues.lastwordmedia.com/1N4a71b86ba6a89012.cde/page/8

 Global QROPS Ltd are based in the UK and authorized and regulated by the UK financial services authority (FSA).

QROPS Advice from Experienced UK Authorized and Regulated Advisers is a post from: Global Qrops

Global QROPS Ltd look at UK Expat Pension Options is a post from: Global Qrops

What are the major changes?
With the introduction of the upper accrual point from 6th April 2009, an individual’s entitlement to state second pension (S2P) is now based on their earnings between the lower earnings limit (£4,940 per annum 2009/10) and the upper accrual point, (£40,040 per annum – frozen from 2008/09) rather than on earnings up to the upper earnings limit.(£43,875 per annum 2009/10)

A side effect of this alteration is that, from 6th April 2009, earnings between the upper accrual point and the higher upper earnings limit have been subject to the full contracted in rate of national insurance contributions (NIC’s) although they do not qualify for any additional state pension benefit in respect of that payment. As a result, those contracted out, through employer or stakeholder/personal pension schemes, are only receiving rebates calculated up to the upper accrual point.

The second major change is the Government announcement, in the Pensions Act 2007, that all money purchase contracting out, for both employer defined contribution (DC) schemes and stakeholder/personal pension schemes, is to be abolished. This is expected to come into effect from 6th April 2012.

Global QROPS Ltd will keep all of their QROPS clients informed of any further developments.

Global QROPS Ltd – Clients with Contracting Out pensions (3) is a post from: Global Qrops