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We are now frequently asked by our customers "What are QROPS?". They're a UK HMRC authorised scheme used for individuals who hold a British pension and are preparing for moving overseas. The QROPS, or Qualifying Registered Overseas Pension Scheme, is a system whereby a person moves their pension plan overseas to a scheme which have a number of financial advantages and gives bigger control to the individual.

The primary primary advantages of QROPS incorporate;

- Ability to control your pension plan in a more tax effective way

- Lower running fees

- Greater Investment Options

- Currency volatility is removed

The principal potential problems of QROPS;

An existing HMRC permitted QROPS scheme can be removed off the certified list with no warning if the HMRC thinks that it does not met the criteria laid down in UK legal guidelines. In the example of Guernsey, 310 out from a total of 313 schemes ended up being taken off in April.There is a potential that HMRC may act retroactively against QROPS schemes which it has de-registered and the pension holder could possibly be held liable for taxes avoided. Nevertheless this as of yet has not occurred.

HOW QROPS WORK?

QROPS are registered with HMRC for individuals who hold a UK pension fund and are trying to move abroad and become exempt from UK taxes and laws.

The enterprise that operates the QROPS scheme ought to be authorized by HMRC and should be qualified and taxed inside country which it is operated from.

After you have been a UK non-resident for more than Ten years after establishing of your QROPS, which you really should be able to prove. Your QROPS Scheme are able to stop notifying HMRC of your withdrawals from your scheme and will no longer be subject to UK pension laws.

As soon as the Ten year transition period may be completed you could then only be prone to the financial authorities where you are domiciled and where your QROPS Scheme is situated.

How to transfer your QROPS?

As a rule of thumb it should take around 2-3 months to transfer your pension plan into a QROPS. The process is speeded up if you can in-cash your pension into cash. This is not essential to do. One can find over almost 1000 HMRC recognized QROPS Schemes, so there must be a scheme which can meet your needs.

Schemes are based from Australia and New Zealand to Malta and Gibraltar. It's worth noting that your QROPS does not need be held in the same country that you are domiciled. However there might be taxation concerns that you may possibly must take into consideration with holding it in another country.

After i die what takes place with my QROPS?

All funds that are left in your QROPS when you die will be transferred onto your beneficiary's and fortunately are not subject to British inheritance taxes.

Significant when establishing a QROPS is that you take professional advice. There are many occasions when a QROPS isn't suitable, and several times when they are. Please contact us here at http://myqrops.net for more info.