Pensions

oldMaking good decisions about your future

For some of you retirement will be a long way off, and for others it might be too close for comfort. Whatever your situation, now is a good time to review your financial plan and possibly adjust it to create a portfolio that is more likely to meet your needs.

As an expatriate, recent UK legislation has been introduced to give you significant advantage over your UK-based peers, but many people remain locked-in to plans and policies that do not make full use of these allowances

Imperius Asset Management works alongside international pensions specialist to provide personalised Pension Transfer Reports to gauge the viability of each transfer into a QROPS or QNUPS, as well as offering a range of QROPS and QNUPS solutions to meet each and ever clients’ retirement planning needs.

QROPS: Qualifying Recognised Overseas Pension Scheme

If you are thinking about enjoying your retirement outside of the UK, then a government approved overseas pension scheme provides you with an opportunity to maximise your retirement income and avoid the pitfalls of UK tax and regulations. A QROPS gives you greater control of your pension at retirement and provides valuable benefits for your spouse and your children.

As the name suggests, QROPS’ arrangements are recognized by Her Majesty’s Revenue and Customs and allows you to transfer most UK pension funds to an approved overseas scheme.

Some of the benefits:

  • Avoid a potential 55% tax charge on distribution of a scheme in drawdown
  • Option to take a pension commencement lump sum tax-free of up to 30% compared to 25% in the UK, provided you have been a non-UK resident for more than 5 full tax years
  • No requirement to buy an annuity
  • The potential for the pension assets to be distributed free of Inheritance Tax to your heirs
  • Eliminate Exchange Rate Risk
  • Potential savings on receiving pension income gross in a lower tax jurisdiction than the UK
  • Wider investment choice
  • Convenience – all UK pension pots under one roof

Can you make use of a QROPS?

  • Are you likely to spend at least 5 full consecutive tax years outside of the UK?
  • Would you like a larger Pension Commencement lump sum and lower taxes on retirement?
  • Do you want to pass on your wealth to your dependents?

QNUPS: Qualifying Non-UK Pension Scheme

QNUPS came about through legislation introduced on the 15th February 2010, and corrected the situation whereby UK pension funds transferred into a QROPS might have been liable to UK IHT charges. A QNUPS needs to satisfy similar conditions as a QROPS and broadly enjoys the same benefits, but with added advantages:

  • Trustees do not have to report back to HMRC
  • No limit to contributions, or size of the fund
  • Income in currency of choice, reducing currency risk
  • Immediately exempt from UK taxes on death
  • Broad range of assets (non-pension monies, commercial and residential property, investments, art, antiques, etc.) can be included

Please note that not everyone will benefit from a QROPS or a QNUPS and a fact-find and specialist pension review will be conducted prior to any advice being given