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.

There may well be a way to go before the first UK pension transfer can go into a Jersey QROPS for a UK expat pension member that is not resident of Jersey. Aside from Jersey pension legislation being re-drafted and accepted in to the island’s law, the UK’s HMRC (Her Majesty’s Revenue and Customs) will have to be satisfied that any potential change in the Jersey pension laws does not interfere with their conditions of the schemes prior approval.

It was originally understood that the option for a non–Jersey resident to transfer a UK pension to a Jersey QROPS would be available from January 2011. Given the work that has to go in to satisfying both the Jersey authorities and the UK’s HMRC, the first Jersey QROPS, for non Jersey residents, will not be available until sometime after that date.

For more information about QROPS, please speak to an adviser at Global QROPS Ltd.

Jersey QROPS to Enter the Market Place is a post from: Global Qrops

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).

QROPS Specialists Work Alongside UK Financial Advisers is a post from: Global Qrops

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.

QROPS, the Proposed Annuity Changes and UK Drawdown 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

Latest HMRC QROPS list is a post from: Global Qrops

This would not only increase the transfer value, by the amount of contribution, but there is tax relief available on the contributions too.
Pre Budget Report Announcement Affecting Potential QROPS Clients

Already, for high earners looking to make fully tax relievable pension contributions, to a UK pension scheme, the new rules that were introduced in the Finance Act 2009 have a limiting affect on the amount that can be contributed above £20,000 per annum that would receive higher rate tax relief.

From April 2011, those with income of £180,000 and above would only receive basic rate tax relief on pension contributions. Those with income between £150,000 and £180,000 would get tax relief somewhere between basic rate and higher rate on a sliding scale.

However, the Pre Budget report has determined that the definition of relevant income (used in determining whether an individual is affected by these changes) will include employer pension contributions therefore affecting those with incomes of £130,000 per annum upwards (rather than from £150,000 upwards).

(However, the Government has said that those with incomes of £130,000 or less before the  inclusion of employer pension contributions will not be affected).

High earners looking for QROPS advice should, therefore, speak to UK QROPS advice specialists (such as Global QROPS Ltd) before making decisions on increased contributions to UK pensions.

UK Pre Budget Report 2009 – Tax Changes Affecting Annual Allowance 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

Before a change in the rules, introduced in the Finance Act 2009, a high earner could contribute up to their earnings into a UK pension scheme, subject to the annual allowance (£245,000 in tax year 2009/10), and receive full tax relief on the contributions. However, a temporary measure introduced by the Finance Act 2009 placed a restriction on the amount that could be contributed.

What changes do Global QROPS Ltd’s clients, that are high earners, need to be aware of?

The temporary measure (mentioned above) is the ‘pension special annual allowance’ and is a tax allowance that restricts the tax breaks on UK pension contributions for high income individuals with relevant income of £150,000 a year and over. This temporary measure commenced on 22nd April 20009 and is expected to be in place until 5th April 2011 – at which point the Government intends to finalize the rules.

The basic allowance is set at £20,000 (although an individual may qualify for an enhanced allowance of up to £30,000). Should a high income individual contribute in excess of the pension special allowance, then a tax charge on the individual would be generated.

High earning individuals, looking to top-up their UK pensions before transferring to a QROPS, should be aware of the potential restrictions.

Transfers to QROPS and the Pension Special Allowance Rules is a post from: Global Qrops

Global QROPS Ltd working with UK IFA’s regarding QROPS advice options is a post from: Global Qrops

‘Who should I ask for QROPS advice?’

The ideal people to ask are specialist QROPS advisers, such as Global QROPS Ltd, who have a team of advisers that have been advising on QROPS since their inception on 6th April 2006.  If you do not know how to get hold of QROPS specialists, your first port of call should be your IFA or financial adviser, who would be able to steer you in the right direction.

‘Why don’t I just approach a QROPS provider directly?’

There is nothing to stop a UK pension member, who is looking at a pension transfer overseas, speaking to a QROPS provider directly. However, with so many QROPS providers in various different countries (some suitable from an individual’s tax perspective and some not), unless you are confident that you are aware of everything that is available to you, it is difficult to know whether you are approaching the most suitable providers in the first place. In addition, QROPS providers are generally not advisers. Other than giving information on their own QROPS product and capabilities, they would not necessarily shed any further light on what else is out there.

Global QROPS Ltd are authorised and regulated by the UK financial services authority.

Who should I ask for QROPS advice? is a post from: Global Qrops