QROPS Explained

If you have a UK pension, from a company or private scheme then this site will be a useful resource for you, to learn more about the UK pension system, what opportunities you have as an expatriate living in Thailand, and how future pension changes may affect you.

For many of our clients the pension is their main source of future freedom, allowing choices in retirement and the potential to give your family a comfortable existence when we can no longer work, and even beyond.

Leaving that pension in a UK scheme could be very costly to your future income, tax position and restrict the income which your family can enjoy when the inevitable happens.

On 6th April 2006, which has become known as “Pensions A day” it became possible for British expatriates to move their British based private and company pensions to a UK HMRC regulated QROPS, and benefit from all the advantages which we will discuss:

  • Take more control of our pension.
  • Grow our pension pot free of tax.
  • Have income which is tax efficient.
  • Pass on 100% of our pension asset to our family for their future security.

QROPS is an acronym that stands for Qualifying Recognised Overseas Pension Scheme. These are pensions that the British government and HM Revenue and Customs have deemed appropriate and acceptable vehicles for expatriates to utilise. Therefore if you’re living, working or retired outside the UK, you can in theory transfer your British pension into such a QROP scheme

  • QROPS, (Qualifying Recognised Overseas Pension Scheme), established by HMRC in 2006 is the result of a European Union law governing the 1992 “Freedom of Movement of Capital.” This stated that when an individual no longer resides in the country of their pension, should be allowed freedom of movement of this pension asset.
  • QROPS is an offshore, international pension fund available to all persons worldwide that currently has a current or frozen pension in a UK scheme, and potentially a European scheme.
  • One major misconception about QROPS is that it is only for people approaching retirement. In fact there are potentially more benefits for those with larger pensions who are still in the height of their career, due to the tax “crystallisation” effects which take place on transfer out of the UK

IS QROPS RIGHT FOR ME?

The most simple answer to this is that it could be. There are many variables which would affect that decision but the key is to get professional advice before taking such a decision. The kind of questions which should be asked, and the research which should be done:

  • How many schemes do you have?
  • What benefits would the schemes give you should they remain in the UK?
  • What is the potential transfer value of the different schemes?
  • What are your future plans, both while still working and into retirement?
  • What non pension assets do you have which could form part of your family’s future security?
  • How well funded is the scheme which you are currently in?
  • What potential rule changes could happen to your scheme (increasing retirement age)?

Please click for your free QROPS information pack.

Alternatively click to speak to one of our local advisors.