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"What are QROPS? QROPS stands for Qualifying Recognised Offshore Pension Schemes as well known by the Her Majesty’s Revenue and Customs (HMRC). They came into effect within the pension simplification guidelines of April 6 2006. The reason for this part of the procedures was to enable a English pension plan holder to transfer their funds to another country after they retire to a different QROPS jurisdiction.

So who must look into a transfer to a QROPS?

Anyone with a UK pension who is either going to move another country or is already looking to move abroad regardless of whether your pension is presently in payment or not. Furthermore those expatriates who have developed UK pension plan benefits could also think about QROPS transfer.

Exactly what are the benefits of this sort of transfer? This list is by no means exhaustive even so the most desired factors are;

1.      To have your pension plan paid in the same currency that you just live in so to steer clear of the erosion of your profits as currency prices change.

2.      Ability to avoid UK income tax on your pension income that, depending on your country of residence will mean you pay a lower rate of tax therefore obtain more money.

3.      To never need or be forced to buy an annuity, this means you can acquire your pension income as the way you see fit.

4.      To be able to pass on your remaining pension fund to your beloved ones on your death. Rather than paying 55% in tax to the British Government.

5.      Greater investment choice and adaptability which means you’re able to increase your fund growth.

Who should you entrust your money with?You should look 3 key points as part of your very own due diligence;

1.      Make sure you are using an agency who has experience in industry.

2.      Ensure your consultant does a full transfer evaluation, taking into consideration the positives and negatives of a transfer including fees, jurisdictions and tax factors.

3.      Due to the complex nature ensure the specialists are qualified to the industry standard to QCF Level 4. Anyone without these skills won't be doing you justice. There are several QROPS jurisdictions where you are able to find a HMRC authorized scheme, including Malta, Jersey and the Isle of Man. Nevertheless there are many of regulations that were brought in during April 2012 by the UK Government which has had a severe affect on the amount of schemes which qualify under the new HMRC rules.

HMRC were feeling that although a number of the schemes were meeting with the letter of the regulation nonetheless they weren't in the spirit of the law. Guernsey schemes happen to be specially horribly hit as schemes registered up until April 2012 allowed non-residents to pay no taxes on their policies while residents needed to pay tax. This can be in contravention of the new rules and therefore 310 out of the 313 rules have been taken from the permitted list.To learn more about QROPS and the ongoing changes to the schemes please contact us at MyQROPS.net.