What are QROPS

Have you ever heard of QROPS? Maybe you have heard of it and have a few questions or many questions about it.

QROPS stands for Qualifying Recognized Overseas Pension Scheme. This is where British non-residents can transfer their assets from an existing U.K. pension scheme into a recognized scheme abroad.

An individual can do this with most pensions providing that this person is living outside of the U.K., or intends to be living outside of the U.K. within the next 6 months. For it to be worthwhile for you to do this pension scheme transfer, your pension should most likely have a total value of at least £25,000.

QROPS was introduced in April 6, 2006 and it is already a very popular pension alternative for U.K. expatriates. A QROP Scheme is an HERC-recognized offshore pension scheme that allows non-UK residents to transfer their UK private/corporate pension offshore, tax free. A pension transfer enables an individual to move their pension, from one scheme to another.

There are many advantages of Qrops USA

There is a reduced tax liability because QROPS are based in offshore jurisdictions that benefit from absolutely no taxation. This means that while in your country of residence you may be liable for taxation on your income, you will avoid capital gains tax on asset growth, as well as potentially avoiding inheritance tax when you have a QROPS.

QROPS are increasingly popular to U.K. expatriates due to the tax advantages on the pension draw downs and death benefits. Pension funds left in the U.K. are heavily taxed and in some cases up to 55%. Transferring a U.K.pension fund into a QROPS can avoid this heavy up to 55% U.K. taxation.

Another advantage is that individuals also have increased flexibility because they will have the option to select an asset management strategy that best reflects their risk level and growth and income requirements. Flexibility is always nice to have, and QROPS definitely allows for this and your pension needs.

Also, individuals will not have to purchase an annuity, as most offshore pension plans are fully flexible, allowing individuals to retain ownership of the asset of their choosing. Individuals can opt for a percentage draw down instead in their QROPS of up to 20% more than you could get by leaving your pension in the U.K.