What is QROPs?
A pension scheme which is administered outside the UK and is registered with HMRC (Her Majesty’s Revenue & Customs). QROPS facilitates easy and convenient pension fund transfer from the United Kingdom.
Why do you need QROPs?
You can opt for QROPS if you have accumulated a pension fund in the UK and wish to transfer the same to India, in a tax efficient1 retirement product registered as QROPS with HMRC.
How will QROPs help you?
Tax Efficient transfer of your pension pot accumulated in the UK to India
Provides steady income for you post retirement in India
Allows your funds with a growth opportunity in India
A Qualifying Recognised Overseas Pension Scheme, or QROPS is an overseas pension scheme that meets certain requirements set by Her Majesty’s Revenue and Customs (HMRC). A QROPS must have a beneficial owner and trustees, and it can receive transfers of UK Pension Benefits. The QROPS programme was part of UK legislation launched on 6 April 2006 as a direct result of EU human rights requirements of the freedom of capital movement.
A QROPS should not incur an unauthorised payment nor scheme sanction charge and is deemed either a trust or a contract based offshore pension. As such the tax residence of the beneficial owner or beneficiaries is critical as some countries do not recognise trusts, the result being the prospect of taxation at source or upon receipt. Examples could include France and the USA.
A QROPS can be appropriate for UK citizens who have left the UK to emigrate permanently and intend to retire abroad having built up a UK pension fund. Alternatively, a person who is born outside the UK having built up benefits in a UK-registered pension scheme can move their pension offshore if they want to retire outside the UK. UK State Pensions cannot be transferred, but defined contribution, defined benefit pension schemes and SSAS can be transferred abroad. A QROPS does not have to be established in the country where one retires; rather, a person can move the pension to another jurisdiction and have the benefits paid into their country of choice.
Give your Pensions a bright future that they deserve with our QROPS Solution. Call 7200039282 now.