Posts Tagged ‘QROPS HMRC’

QROPS and Important UK Drawdown Clarification

Tuesday, August 31st, 2010

The major problems for members of UK pension schemes, between the ages of 50 and 55, in UK drawdown, who were looking to transfer to QROPS post 6th April 2010, could have been resolved by HMRC in their July pension’s policy document.

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.

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A UK Pension Transfer to Australia – The latest HMRC QROPS list

Friday, January 29th, 2010

The UK Pension Scheme Services (PSS) have updated the QROPS (Qualifying Recognized Overseas Pension Scheme) list on the HMRC (Her Majesty’s Revenue and Customs) website on 15th December 2009. Individuals looking at a UK pension transfer to Australia, would observe that there are over 450 Australian QROPS schemes currently on the list.

For full details of the HMRC update see link: http://www.hmrc.gov.uk/NEWS/INDEX.HTM

If an individual does want to complete a UK pension transfer to Australia, they may be tempted to look at the list and work from there. However, HMRC stress that the QROPS list is not a recommendation or advertisement for any particular scheme, it is merely for information purposes for an individual to check that an Australian QROPS that they have received professional QROPS advice on is indeed approved.

Global QROPS Ltd advise many people migrating to Australia on their pension options. It is not, in all circumstances, best advice to transfer pensions to Australia and people need to be aware of all of the advantages and disadvantage before making a decision.

Many of the Australian QROPS on the HMRC list are either Australian employer’s pension schemes or Self Managed Super Funds (SMSF). These schemes may be available for an employee of a company or to an individual that has set up a SMSF but someone looking down the QROPS list could not simply pick out a scheme and apply to become a member.

For advice on a UK pension transfer to Australia, speak to an adviser at Global QROPS Ltd.

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Global QROPS Ltd warning over QROPS advice from Employer’s Schemes

Sunday, October 25th, 2009

For people looking to transfer out of their UK scheme to an overseas pension scheme, their first enquiry may be to the administrators or trustees that are running their existing UK pension scheme.
Global QROPS Ltd has spoken to clients, who have been advised by their scheme administrators or trustees of their employer’s pension, that a pension transfer overseas is not possible. The truth is that virtually all UK pension schemes, if no payments have commenced paying to members, can be transferred to a Qualifying Recognized Overseas Pension Scheme (QROPS).
Unless the administrators running your UK pension scheme has had a member transfer their pension overseas, since April 2006, they may not know what is possible. Small employer run schemes or even local government schemes, administered regionally, may not have overseas pension transfer experience.
A client of Global QROPS Ltd was recently told, by their UK pension administrator, that a pension transfer to Australia was impossible under UK rules. This is incorrect and with expert QROPS advice, the client will now have more flexible retirement options.
Many of the top Life Companies and SIPP (Self Invested Personal Pension Plan) providers, on the other hand, will be aware of the rules on transfers overseas. It would be a transaction that they would have completed in the past. However, they would not be in a position to select a jurisdiction or advise on a suitable QROPS.
Global QROPS Ltd, authorized and regulated by the UK financial services authority, would be able to provide the most suitable advice.

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