The problem came when the retirement age for members of UK pension schemes and members of QROPS (who are within the 5 year QROPS reporting period) increased from age 50 to 55, on 6th April 2010.
As the rules stood, there was a restriction for those who had taken pension benefits through USP (unsecured pension – previously referred to as drawdown) prior to 6 April 2010, when over age 50 but under 55. As long as the USP payments continued to come from the member’s original scheme, as pre 6th April 2010, there was no issue. However, if a UK pension member in USP (between the ages of 50 or 55) was to transfer to another UK pension arrangement or QROPS (for example) the problem arose that HMRC indicated that further income payment from the new scheme would be classed as an unauthorized payment.
The latest HMRC document on this matter states that regulations will be brought in to allow transfers from USP to USP (drawdown to drawdown) to continue without the member incurring the HMRC unauthorized payments charge on any income taken.

This is both a logical step and good news for people whose UK pension is in USP, that are in between the age of 50 to 55, who are looking to transfer to QROPS, even if they are within the QROPS reporting period. Any continuing payments from the new scheme should not be subject to an HMRC charge.

Anyone in USP (or drawdown) looking to transfer to QROPS, should seek specialist QROPS advice from an expert QROPS adviser, such as Global QROPS Ltd, to ensure the process runs smoothly.

QROPS and Important UK Drawdown Clarification is a post from: Global Qrops

These proposals are very interesting for those people looking to transfer their UK pensions to QROPS (Qualifying Recognized Overseas Pension Schemes).

The new proposals look to remove the requirement to purchase an annuity from a UK scheme, abolish ASP (Alternatively Secure Pension) and introduce two types of drawdown – all affective from 6th April 2011.
All these changes add additional considerations for potential QROPS transfers.

As with all changes to UK pension legislation, QROPS trustees have to be aware because their schemes have to follow the UK rules, and report any payments made to the member, for the first 5 complete UK tax years of a member’s overseas tax residency (known as the QROPS reporting period). Generally speaking, the methods and amounts that can be paid from a QROPS, within the reporting period, have to be broadly in line with what UK schemes permit.

The consultation paper asks for views from the industry (and interested parties). These views will be expressed until 10 September 2010.

Global QROPS Ltd will explain ‘Capped’ and ‘Flexible’ drawdown in later news items.

In the meantime, the pension commencement lump sum will still be tax free, with pensions in payment taxed as income (from UK schemes) – this has not changed in the proposals – and benefits will still be tested against the Lifetime Allowance at the normal Benefit Crystallization Events (BCE’s), such as on transfer to QROPS.

QROPS and the Proposed UK Annuity Changes is a post from: Global Qrops

http://www.ftadviser.com/FinancialAdviser/Pensions/Personal/News/article/20100812/8d9d855c-a3a5-11df-ae7f-00144f2af8e8/Close-Intl-advice-is-critical-for-Brits-retiring-abroad.jsp

In the majority of cases, for UK pension members seeking to retire in Australia, it would be far more tax advantageous to have their benefits paid from an Australian Superannuation scheme (that has been approved as a QROPS), then have their benefits paid directly from a UK scheme – where any income would be taxed at the individual’s highest marginal rate of tax in Australia (if the individual is a permanent resident of Australia).

The removal of the FIF legislation has not changed the basic premise that a tax free retirement, for a permanent resident of Australia, would be best achieved with a pension transfer to Australia. However, now allowing pension funds outside of Australia to grow free from FIF tax, means that getting the best advice on the correct timing of a potential pension transfer to Australia has never been more important.

Simply holding UK pension funds, because they can grow free from FIF, and transferring them closer to retirement in Australia, may not be the answer. The type of UK pension (ie final salary scheme) the exchange rate, the annual Australian cap on overseas pension transfers in and the tax that applies on transfers into Australia after 6 months of the member’s arrival, are just some of the other main considerations that would form part of the advice as to the timing of a UK pension transfer to Australia.

UK Pension Transfer to Australia – Change in FIF Legislation is a post from: Global Qrops

The Investor Retirement Visa is designed for individuals aged 55 and over with net assets in excess of AUD$1,000,000. The visa allows you to live in Australia for four years and is renewable every four years thereafter, provided that you continue to meet the eligibility criteria.

With its tax friendly regime for temporary residents, together with all year round sunshine, Australia is a popular retirement destination for British expats. Retiring to Australia also allows you to transfer your UK Pension fund to an Australian Superannuation fund which is registered as a QROPS. Australian QROPS allow you to access your pension fund as a 100% tax free lump sum, once you are outside of the QROPS reporting period.

Global QROPS specialise in advising migrants on how to structure their finances in order to meet the financial requirements for the visa, whilst also taking advantage of the foreign sourced income exemption.

To find out more about the Investor Retirement Visa requirements, or Australian QROPS, please contact the Global QROPS team.

Australian Investor Retirement Visa – tax free retirement is a post from: Global Qrops

The Australian treasury originally announced plans to abolish the FIF regime back in May 2009. However, it is only recently that the draft replacement legislation has been published.

It is proposed that the FIF rules will be replaced with an ‘anti-roll-up’ regime, which is targeted at a very narrow type of foreign accumulation fund.

It appears from the draft legislation, that it will be possible for Australian residents to hold funds in certain overseas pension funds, without paying tax on the annual growth.

Income drawn from a foreign pension fund will generally be assessable to Australian tax, whilst income from an Australian Superannuation fund is tax free. Therefore individuals should still look at the possibility of transferring their funds to an Australian Superannuation Plan. Advice on whether a pension transfer to Australia is in client’s best interests may not be as clear cut as under the previous regime and factors such as the exchange rate, visa status and the individuals long term intentions need to be taken into consideration.

Australian Foreign Investment Fund Rules Abolished is a post from: Global Qrops

The Chancellor George Osborne announced in the emergency Budget that the indexation applied to public sector pensions would change from the Retail Prices Index to CPI. The implementation date has not yet been confirmed but it is anticipated that guidance should be published within then next few months.
Over time CPI is generally 0.5% lower than RPI mainly because it does not include housing costs. As such, the change is likely to reduce government pension liabilities but is likely to result in lower transfer values for members’.

Individuals in receipt of a guaranteed transfer value for public sector schemes, wishing to transfer to a QROPS, should act swiftly before the guarantee period expires.

Once Public Sector schemes have received guidance from Treasury on how to apply CPI we are expecting long delays while the schemes deal with the backlog of transfer value requests that have accumulated during the transfer embargo.

If you are a member of a public sector pension please do not hesitate to contact Global QROPS for further advice.

Transfer delays for members’ of public sector pension schemes is a post from: Global Qrops

The Governments of Queensland and Western Australia, will be discussing, first-hand, the new State Migration Plans. New and relevant information will also be presented on the state sponsorships that these governments have to offer.

There will be a range of service providers in job placement, banking/currency transfer and removals exhibiting and available to speak on vital aspects of both a successful migration and settling in Australia. As stated, Global QROPS Ltd will be there to provide information on pension transfers to Australia as well as other important financial advice relevant to someone migrating to Australia.

This comprehensive seminar will be held in London, on Saturday 4th September from 11am to 2pm at: Westpac Banking Corporation
63 Saint Mary Axe
City of London, London EC3A8LE
020 7621 7000

In Attendance:
Global QROPS Ltd – experts in financial advice and pension transfers to Australia
Government of Queensland
Government of Western Australia
Thames Migration – Registered Migration Agents Hannibal Khoury and Greg Veal – the Thames team
Westpac – Expatriate Banking
PSS – Removals and World Movers
Hays – Job Placement Specialists

The seminar will begin with a presentation, at 11am, from the attending State Governments and Registered Migration Agent Hannibal Khoury. At the end, ample opportunity exists to individually speak with ourselves, a Registered Migration Agents, the states and a range of other settlement service providers about your visa situation and migration plans.

To secure your place at this FREE event please complete the online registration form at – http://www.thamesmigration.com/contactus/

The Thames Migration Team will be in touch shortly to confirm that your attendance has been booked.

Please feel free to contact Global QROPS Ltd for more information regarding this Seminar, Australian financial advice or pension transfers to Australia.

Global QROPS Ltd attending the FREE London Seminar on Australian Immigration is a post from: Global Qrops

This comprehensive seminar will explain, in detail, the regulation changes that occurred mid-year and enacted as part of the Australian Government’s overhaul of its General Skilled Migration Program.

The new State Migration Plans will be discussed, first-hand, with the Governments of South Australia, Victoria and Western Australia who will be presenting information on the state sponsorships that they have on offer.

As well as Global QROPS Ltd providing important information on pension transfers to Australia in particular and financial advice relating to migrating to Australia, in general, there will be a range of service providers in banking/currency transfer, job placement and removals exhibiting and available to speak on other vital aspects of both migration and settling in Australia.

This comprehensive seminar will be held in Guildford, Surrey, on Saturday 7th August from 10am to 4pm.

(Guildford is 30 miles south of London – just off the A3 – and a 37 minute train journey from London Waterloo).

In Attendance:

Global QROPS Ltd – experts in financial advice and pension transfers to Australia
Government of South Australia
Government of Victoria
Government of Western Australia
Registered Migration Agent John Adams and the Immigration2oz.com team
Commonwealth Bank of Australia
Anglo Pacific World Movers
Bridges Relocation – Job Placement Specialists
Next Step Australia – Job Placement Specialists

The seminar will consist of two presentations, at 10am and repeated again at 1pm, from the attending State Governments and Registered Migration Agent John Adams. In between these, ample opportunity exists to individually speak with ourselves, a Registered Migration Agent, the states and a range of other settlement service providers about your visa situation and migration plans.

To secure your place at this FREE event please complete the online registration form at – http://www.immigration2oz.com/seminar-registration.html

Immigration2oz.com will be in touch shortly to confirm that your attendance has been booked.

Please feel free to contact Global QROPS Ltd for more information regarding this Seminar, Australian financial advice or pension transfers to Australia.

Global QROPS Ltd at the Australian Visa Regulations Changes Seminar is a post from: Global Qrops

On Saturday 14th August 2010, in Guildford in Surrey, Global QROPS Ltd will be talking about the financial matters (such as tax exemptions selling or retaining UK property, life assurance, tax, savings and investments and, of course, pension transfers to New Zealand) to help make your migration to New Zealand as tax efficient and financially successful as possible.

As well as Global QROPS Ltd, other key speakers include a New Zealand banking expert, a currency exchange broker, an international removals expert and a couple of recruitment agencies. This seminar will be headlined by a prominent New Zealand migration agent who can tell you how to obtain the visa you require to make your move to New Zealand happen.

This seminar is ideal for teachers, people in the medical profession, IT professionals, chefs, social workers, electricians, electronic engineers, urban planners and auditors who are looking for a fresh start in New Zealand.

This seminar represents a tremendous opportunity for anyone serious about migrating to New Zealand to commence planning their move.

There is a limit for the number of spaces at this event, therefore please send your details and your Curriculum Vitae to info@migrationassociates.co.uk in order to assess your eligibility to migrate.

Please feel free to contact us for more information. Global QROPS Ltd look forward to seeing you there.

Global QROPS Ltd at the Summer New Zealand Migration Seminar is a post from: Global Qrops

HMRC Review Drawdown Transfers Rules – the Affect on QROPS is a post from: Global Qrops