QROPS - WHAT IS IT?

A Qualifying Recognised Overseas Pension Scheme.

WHO ARE GUERNSEY QROPS SUITABLE FOR?

HMRC allow any non UK resident to transfer their UK pension fund to a QROPS in an overseas location such as Guernsey. Although each case is different the minimum transfer value that we would arrange to a Guernsey QROPS is typically £100,000. For smaller amounts  other solutions may be available for the long term expat.

WHAT ARE THE ADVANTAGES OF QROPS?

• No complusion to purchase an annuity by the age of 75 thus avoiding a potential UK tax charge of upto 82 percent upon death.

• Conrtol of investments including the possibility of an in specie transfer from an existing SIPP fund.

• Wide selection of investment options.

• Ability to pass on remaining funds tax free to future generations upon death.

• Free of UK Inheritance Tax.

• Tax planning.

• Avoid any future changes to UK pensions law that might affect your UK pension.

• Income and capital paid gross without any deduction of Guernsey tax. (Payments are subject to local taxation where you are resident. However, in Spain, for example, with the correct advice and planning a structure can be set up so that income is paid at under 3 percent).

WHY GUERNSEY?

Guernsey is a Crown Dependency in the Channel Islands, a part of Great Britain owing its allegiance to Her Majesty The Queen. There is easy access to both the UK and mainland Europe. With a population of just 60,000 it is one the world's leading offshore financial centres housing over 50 licenced banks, as well as insurance companies, fund managers and its own Stock Exchange.

The regulatory body for this finance sector is the Guernsey Financial Service Commission which offers a well controlled and respected regulatory framework.

It is not surprising that Guernsey has positioned herself as one of the most important centres for QROPS.

SOME WORDS OF CAUTION

Be wary of unregulated and unauthorised advisers without the appropriate background and experience of the UK pensions market, especially those offering no formal procedure for a recommendation. Remember a one size solution does not fit all cases.

Also, our understanding is that most but not all Guernsey Providers have been able to confirm that they are not  investment regulated schemes (SI 2009 / 2047). This a complex area and specialied advice should be taken. We would not recommend a transfer to an investment regulated scheme.
 

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