What is a QROPS?
A QROPS is a Qualifying Recognized Overseas Pension Scheme. It is a pension scheme held abroad by trustees that HMRC recognizes. It avoids all UK taxes including a 55% tax upon death whilst drawing benefits and UK income taxes of up to 45%. 100% of your pension gets passed on to your kids upon death. You can then invest in almost anything you like apart from residential property.
How Does a QROPS Work?
- Your UK pension gets transferred from the UK to your designated QROPS trustees overseas. This is usually held in Gibraltar, Malta or New Zealand.
- The money then gets reinvested, usually in a tax-free wrapper where you can invest in a range of ETF’s, mutual funds, bond funds, property funds, UK government backed gilts or you can sit it in cash in a high interest account.
- Once your UK pension has been transferred, you avoid all UK taxes. Avoid 55% tax upon death when taking your pension income and avoid UK income taxes on that income.
- You can choose which currency to invest in. You can invest in GBP denominated funds, USD or EUR or most other currencies of your choosing.
Top Reasons to Invest in a QROPS[list type=”large-tick”] [li]No 55% tax upon death and no UK income taxes of 20% – 45%[/li] [li]Choose the currency of your pension – GBP, USD, EUR or other currency[/li] [li]Invest in the mutual funds, ETF’s, bond funds, property funds you want with 5* Morningstar ratings[/li] [/list]
QROPS Destinations. Where is My QROPS Transferred to and Why?
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