Dedicated pension advice for expatriates
Individuals who are looking to move abroad may be considering transferring their UK pension to one of the Qualifying Recognised Overseas Pension Schemes (QROPS) recognised by HM Revenue & Customs (HMRC).
However, it is vital that individuals contemplating such a move take professional advice to ensure that they choose the most suitable scheme for their particular circumstances and their long-term needs – as well as whether transferring to a QROPS is the best option.
Indeed, according to Guardian Wealth Management, individuals need to look beyond the tax benefits when choosing their scheme, and also need to bear in mind that QROPS are regulated by the authorities in the country where it is based, rather than by the Financial Services Authority (FSA).
Furthermore, investors in QROPS will face charges for putting money into taxable property, which includes assets such as fine wine, classic cars, art and antiques.
While such penalties do not apply to Qualifying Non-UK Pensions Schemes (QNUPS), there may be a tax charge for transferring funds directly from a UK pension. However, this can be overcome by moving the income to a QROPS and then transferring it to a QNUPS after five tax years of non-residency.
