QROPS | QNUPS| UK pension transfer specialists. Ethical, professional financial advisers headquartered in Hong Kong. We are always available to answer your questions, email: info@qropsspecialists.com
Friday, 29 July 2011
Pension Transfer for UK Expats who live in the USA and want their pension in USD and lower taxes.
http://ping.fm/0dYyF
http://ping.fm/0dYyF
Thursday, 7 April 2011
UK Pension Transfers to QROPS Decrease Slightly
Transfers to qrops pension schemes have decreased by 10%
The volume of transfers from UK pension to overseas QROPS schemes fell by close to 10% between 2008 and 2010.
Billy Mackay, marketing director at AJ Bell, claimed that this change will not really effect transfers to Qrops schemes for individuals retiring overseas.
"The issue which clearly concerns the government is the promotion of Qrops as a tax avoidance vehicle to individuals who have little or no intention of leaving the UK."
He warned that the fall in the number of Qrops transfers provides evidence that changes to the UK pensions framework, such as the reduction in the tax charge applied on lump sum death benefits from the funds of individuals over 75 and the introduction of flexible drawdown, were already hitting the popularity of these transfers and this trend will continue.
Mr Mackay said: "We have also recently seen changes to the rules on disguised remuneration in EFRBS and the use of scheme pension to meet the minimum income requirement for flexible drawdown.
"All of these changes provide further evidence that the government is keen to support use of pensions in ways that remain consistent with the original intent of providing a secure income in retirement."
QROPS specialists can help find the right QROPS for you.
The volume of transfers from UK pension to overseas QROPS schemes fell by close to 10% between 2008 and 2010.
Billy Mackay, marketing director at AJ Bell, claimed that this change will not really effect transfers to Qrops schemes for individuals retiring overseas.
"The issue which clearly concerns the government is the promotion of Qrops as a tax avoidance vehicle to individuals who have little or no intention of leaving the UK."
He warned that the fall in the number of Qrops transfers provides evidence that changes to the UK pensions framework, such as the reduction in the tax charge applied on lump sum death benefits from the funds of individuals over 75 and the introduction of flexible drawdown, were already hitting the popularity of these transfers and this trend will continue.
Mr Mackay said: "We have also recently seen changes to the rules on disguised remuneration in EFRBS and the use of scheme pension to meet the minimum income requirement for flexible drawdown.
"All of these changes provide further evidence that the government is keen to support use of pensions in ways that remain consistent with the original intent of providing a secure income in retirement."
QROPS specialists can help find the right QROPS for you.
Trouble Ahead for HK QROPS
Hong Kong QROPS Schemes under scrutiny.
HMRC has announced a crackdown on tax abuses by QROPS HK Schemes.
An article in the International Adviser today stated that legislative measures are to be put in place to stem tax avoidance through the use of QROPS. It is believed, though, that this only relates to Hong Kong schemes.
Many advisers have been promoting Hong Kong QROPS schemes for a while as being able to access 100% of your pension as a lump sum, which is against the spirit of QROPS transfers. This could spell trouble for many QROPS HK schemes
The Inland Revenue announced that a “tax loophole would have emerged” had the government not taken action. No detail was provided on what the loophole is or what action will be taken.
More information about QROPS HK schemes should be provided on HMRC’s website, although no detail was available on the HMRC site at the time of writing this article.
The announcement said the legislation takes effect from today.
http://qropsspecialists.com/qrops-hk-hmrc-initiates-crackdown-on-qrops/
HMRC has announced a crackdown on tax abuses by QROPS HK Schemes.
An article in the International Adviser today stated that legislative measures are to be put in place to stem tax avoidance through the use of QROPS. It is believed, though, that this only relates to Hong Kong schemes.
Many advisers have been promoting Hong Kong QROPS schemes for a while as being able to access 100% of your pension as a lump sum, which is against the spirit of QROPS transfers. This could spell trouble for many QROPS HK schemes
The Inland Revenue announced that a “tax loophole would have emerged” had the government not taken action. No detail was provided on what the loophole is or what action will be taken.
More information about QROPS HK schemes should be provided on HMRC’s website, although no detail was available on the HMRC site at the time of writing this article.
The announcement said the legislation takes effect from today.
http://qropsspecialists.com/qrops-hk-hmrc-initiates-crackdown-on-qrops/
Thursday, 17 March 2011
Moving Your UK Pension to France
Moving to France is a popular choice for UK expats to go for retirement. A survey conducted in 2006 showed that there were 200,000 Brits living in France. Estimates today figure that statistic to be around 300,000.
If you are considering retiring in France, there are some new tax rules coming into effect which you need to be aware of and should seek advice from a specialist today. If you have transferred your pension into a QROPS pension scheme in France or considering moving your scheme, please be aware that new tax regulations are about to come into play.
Foreign nationals who have worked in the UK or British ex-pats who draw a cash lump sum from a QROPS when residing in France should pay income tax on any payment that is more than £5,000 (6,000 EUR).
Those in the upper income bracket could pay tax at 41% if they cash in their pension lump sum in France. This lump sum will be either 30% or 25% depending on the QROPS scheme and juridiction.
Personal allowance for income tax in France is 10%, but you would still be faced with a sizeable tax charge on the lump sum.
We are suggesting that anyone moving to France and deciding to move permanently abroad should take their lump sum before leaving.
Ex-pats who are living in France should have the forethought to figure out the impact of income tax before deciding on where or whether to take a lump sum.
In order to protect your estate, you should speak with a QROPS specialist first.
The rules apply not only to a QROPS, but also lump sums paid under many other types of pension scheme.
This tax is applied to all QROPS and not just French QROPS.
Government and local government pensions are not hit by the ruling, but some lawyers suggest that the French government may broaden the legislation to get more money from these as well.
Anyone looking to move or retire to France should contact a professional QROPS adviser ASAP. You can speak to a QROPS specialist today at:
qrops@credendaassociates.com
If you are considering retiring in France, there are some new tax rules coming into effect which you need to be aware of and should seek advice from a specialist today. If you have transferred your pension into a QROPS pension scheme in France or considering moving your scheme, please be aware that new tax regulations are about to come into play.
Foreign nationals who have worked in the UK or British ex-pats who draw a cash lump sum from a QROPS when residing in France should pay income tax on any payment that is more than £5,000 (6,000 EUR).
Those in the upper income bracket could pay tax at 41% if they cash in their pension lump sum in France. This lump sum will be either 30% or 25% depending on the QROPS scheme and juridiction.
Personal allowance for income tax in France is 10%, but you would still be faced with a sizeable tax charge on the lump sum.
We are suggesting that anyone moving to France and deciding to move permanently abroad should take their lump sum before leaving.
Ex-pats who are living in France should have the forethought to figure out the impact of income tax before deciding on where or whether to take a lump sum.
In order to protect your estate, you should speak with a QROPS specialist first.
The rules apply not only to a QROPS, but also lump sums paid under many other types of pension scheme.
This tax is applied to all QROPS and not just French QROPS.
Government and local government pensions are not hit by the ruling, but some lawyers suggest that the French government may broaden the legislation to get more money from these as well.
Anyone looking to move or retire to France should contact a professional QROPS adviser ASAP. You can speak to a QROPS specialist today at:
qrops@credendaassociates.com
Wednesday, 26 January 2011
What is QROPS?
Qualifying Recognized Overseas Pension Scheme
QROPS is a Qualifying Recognized Overseas Pension Scheme which took effect on April 6, 2006. The Inland Revenue agreed to allow expats who have worked in the UK to transfer their pension schemes offshore to HMRC approved QROPS in order to legally take advantage of tax breaks due to the fact that these expats now reside offshore.
Who qualifies for a QROPS tranfer?
Who cannot transfer into a QROPS?
- UK state pensions cannot be transferred.
- Pensions which have already purchased an annuity.
- Certain occupational final salary pension schemes in drawdown (Please email to check if your pension qualifies).
- Non-UK pension schemes.
Do I need to transfer my QROPS to the country I live/retire in?
No. You can hold your pension in a different country than where you retire to. This is often done for security and tax reasons. For example, you can transfer your pension to the Isle of Man or Guernsey for security reasons, whilst living and retiring in Thailand. This allows your pension to grow in a country with a low or zero tax regime. You can then have your retirement income paid directly to your bank account in the country you reside in or paid into an offshore account.
Why would you move into a QROPS?
As taxes increase in the UK, it makes sense to find a safe jurisdiction such as the Isle of Man or Guernsey to administer your pension in a tax efficient environment.
Income tax in the UK varies from 20%-50%, capital gains tax is 18%-28%, dividends tax is up to 42.5% and inheritance tax is 40% above the threshold.
A QROPS transfer protects your pension from UK taxes whilst enabling you to invest in a much wider range of investment options and strategies. You can also hold your pension in many different currencies. It also allows you to invest in commodities such as gold, silver and oil.
From an estate planning viewpoint, QROPS allows you to pass all of your pension pot onto your loved ones if anything happens to you. Under a traditional UK penion scheme, typically a spouse gets only half and then the kids get even less. You also do not have to purchase an annuity, which gives your pension a chance to grow.
QROPS Advice
Send enquiries to qrops@credendaassociates.com
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