Archive for September, 2010

Jersey QROPS to Enter the Market Place

Sunday, September 26th, 2010

As anyone looking into QROPS (Qualifying Recognized Overseas Pension Schemes) would be aware, there are in excess of 100 QROPS in Jersey. These QROPS are not open to non-residents of Jersey. However, this situation could be about to change at some point in the next 2 years.

Current legislation in Jersey allows only residents to be members of their pension schemes. Jersey officials are now looking at this law with the view of making their pension schemes (that have been approved as QROPS by HMRC) available in the international market. (more…)

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UK’s HMRC’s Latest QROPS List

Wednesday, September 22nd, 2010

The latest QROPS list, published by Her Majesty’s Revenue and Customs (HMRC) Pension Scheme Services (PSS), was published on 3rd September 2010.

As with all previous updates with the QROPS list, this is not a completely definitive list. There may be several QROPS (Qualifying Recognized Overseas Pension Schemes) available that have chosen not to be on the list.

More important to note, however, is the fact that there may be QROPS on the list that are about to lose their approval or have, prior to the list being published, lost their approval already. (more…)

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QROPS Specialists Work Alongside UK Financial Advisers

Saturday, September 18th, 2010

QROPS (Qualifying Recognized Overseas Pensions Schemes) and latterly QNUPS (Qualifying Non UK Pension Schemes) are an important retirement planning tool for UK Independent Financial Advisers (IFAs) for their clients who are looking to migrate or, indeed, have already moved abroad. Clients themselves are becoming increasingly aware of the opportunities that QROPS provide.

Global QROPS Ltd work alongside UK IFA’s to ensure that the IFA’s offshore and potentially migrating clients are provided with the best advice.

Global QROPS Ltd are often approached by UK IFA’s to assist them regarding QROPS advice and subsequent transfer. Typically a UK IFA may have a gap in their knowledge, when it comes to this specialist area, or would be restricted by their compliance department when it comes to advising on QROPS.

Since the inception of QROPS on A-day (6th April 2006), the advisers of Global QROPS Ltd team have been at the forefront of transferring UK pensions overseas. Our team of advisers work alongside UK IFA’s ensuring that their client receives the best advice and that the introducing IFA is remunerated in the appropriate way.

Once again, Global QROPS LTD has been quoted in the financial journal, Money Marketing stating their position in the IFA market (please see the link):

http://www.moneymarketing.co.uk/offshore/aes-intl-calls-in-specialist-to-mitigate-qrops-risks/1018075.article

Global QROPS Ltd are UK based financial advisers, authorised and regulated by the Financial Services Authority (FSA).

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QROPS, the Proposed Annuity Changes and UK Drawdown

Wednesday, September 15th, 2010

Following Global QROPS Ltd’s news item, posted on our website on 28th August 2010, regarding the proposed annuity changes featured in the UK Treasury’s consultation document – published as a result of the UK Emergency Budget on 22nd June 2010 – this Global QROPS Ltd news item has been composed to further clarify the terms ‘capped’ and ‘flexible’ drawdown.

With effect from 6th April 2010, according to the recently drafted consultation paper, the UK government are looking to abolish compulsory annuity and alternatively secured pension. Abbreviated to ASP, alternatively secured pension is effectively ‘drawdown’ directly from a member’s pension fund – for pension members aged 75 or over.

Currently, prior to age 75, a member of a UK pension or a QROPS, has the option of USP (unsecured pension) which is drawdown pre age 75. USP allows income on the basis of zero to 120% of the GAD (Government Actuary Department) limit until age 75, when the less flexible ASP rules apply.
As Global QROPS Ltd understands, the proposals state that there are two types of drawdown to become available: ‘capped’ and ‘flexible’ drawdown.

Capped drawdown will be on the same basis as USP, but with the ability to continue past age 75 – although the upper limit of 120% GAD will be reviewed to see if it is still a realistic rate to use.

Flexible drawdown will allow an individual to draw an unlimited amount from their fund, with the proviso that the member can demonstrate that they have secured a sufficient minimum income to prevent them from falling back onto the State. The method of assessing this income (known as the Minimum Income Requirement) has not yet been decided.

It is important that people looking to transfer to QROPS (especially those within the QROPS reporting period) are aware of the rules as the levels of income that they take from the QROPS could be affected by this.
For further information, please speak to an adviser at Global QROPS Ltd.

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Global QROPS Ltd Quoted in the Financial Times

Sunday, September 12th, 2010

The leading UK based financial advisers on UK pension transfers to Australia, Global QROPS Ltd, have once again been quoted in the Financial Times.

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.

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QROPS and QNUPS

Wednesday, September 8th, 2010

As most people, looking to affect a pension transfer overseas from their UK scheme will be aware, a transfer can only take place if the receiving scheme is a Qualifying Recognized Overseas Pensions Scheme (QROPS). QROPS came into effect with the introduction of Pensions Simplification in the UK. The QROPS legislation was set down in the Finance Act 2004 and in Statutory Instrument 2006/206.

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

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QROPS Providers to become Multi-Jurisdictional

Friday, September 3rd, 2010

QROPS (Qualifying Recognized Overseas Pension Schemes) has increasingly become an excellent commercial opportunity for many overseas trust and pension companies, since the QROPS legislation was introduced by the UK’s HMRC (Her Majesty’s Revenue and Customs) on 6th April 2006.

Since the inception of QROPS, many providers have emerged in countries and jurisdictions such as Guernsey, Isle of Man, Gibraltar, New Zealand and Malta (to name but a few).

Reputable QROPS advisers, such as Global QROPS Ltd, will advise on an appropriate QROPS in a jurisdiction to match their client’s circumstances, as each jurisdiction has their own particular rules and benefits (which apply after the member has been non-UK tax resident for 5 complete UK tax years).

As well as having benefits, many QROPS providers, however, have their own restrictions too – this is usually attributed to the local tax rules or pension regulations in their own country or territory.

To counteract this, QROPS providers are looking at the possibility of setting up a trust outside of their own jurisdiction or even annexing their product with another scheme in an alternative jurisdiction, with the result of offering the customer a full range of retirement options.

Leading QROPS advisers, Global QROPS Ltd, have once again commented on this in leading financial journal, Money Marketing. Please see the link to this:

http://www.moneymarketing.co.uk/pensions/guernsey-qrops-plans-new-zealand-scheme/1011242.article

Please contact Global QROPS Ltd with any questions on transfers to appropriate QROPS.

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