Your QROPS questions answered:

The most common queries relating to QROPS

No. Depending on the jurisdiction (and the individual provider) there are differences in when the lump sum drawdown is available, annual income and many other aspects. For this reason it is imperative to take expert, independent advice from a regulated specialist QROPS adviser.
Anyone aged between 18 and 75 with a UK non-State pension can transfer their fund into a QROPS, providing they have not bought an annuity. UK State pensions are not eligible for transfer into a QROPS, but some Irish schemes have been deemed admissible. This doesn’t mean that choosing a QROPS is easy, though, and considerations such as pension benefits, the total amount in your pension, and where you are currently a resident all need to be analysed in detail by a specialist in order for the most appropriate choices to be made.
Yes. If a QROPS holder returns to the UK after five tax years have elapsed there is no obligation to transfer the fund back to the UK. In fact, there are significant advantages in not doing so, such as being taxed on only 90% of your pension income.
Theoretically, it’s possible for an individual to set up a QROPS without professional help, but it is a complicated and time-consuming task best left in the hands of the professionals. In addition, the same professionals can provide expert reviews of each individual’s financial situation, recommendations spanning the entire QROPS market, an overview of the investment options available and a complete explanation of which QROPS are best suited to each individual’s needs and requirements. Most of the better QROPS actually stipulate that a regulated financial adviser should handle the transfer.
Yes. The QROPS provider is obliged to report to HMRC for the first ten years after the transfer into the QROPS is made, informing about all withdrawals, payments and transfers. After that, reporting to HMRC is no longer obligatory.
Yes. Normally the minimum amount of extra pay-ins is £5,000, although this can vary according to the jurisdiction and QROPS provider.
A minimum of £25,000 is required, although in order for true cost-effectiveness to be achieved £50,000 would be a minimum ballpark figure.
In contrast to a normal UK pension fund, 100% of any funds remaining in a QROPS can be passed on to named beneficiaries upon death of the holder (assuming that the five-year period of absence from the UK has been completed). QROPS are exempt from Inheritance Tax.
The tax you pay on a QROPS depends on your country of residence. In Spain low tax can be ensured by declaring pension income as an annuity. In some cases tax may also be payable in the territory of jurisdiction: your regulated QROPS adviser will advise you on how to avoid double taxation.

 

Further information about QROPS:

History of QROPS, why were QROPS created?

Benefits of taking out a QROPS for ex-pat residents

The most frequently asked questions in reference to QROPS

How long does it take to set up a QROPS

What are QROPS?

QROPS jurisdictions. Where can QROPS be based?

Talk to us about your QROPS needs

What Our Clients Say:
“David and his staff took all the hassle out of my transfer and explained everything simplistically in layman’s terms. Thank you so much, retirement now is a joy”
Mrs. F., Lanarca, Cyprus