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[Rods2]

If anybody is going to retire abroad in the next few years and have a private pension, they maybe interested in this where you can move your pension pot abroad into a Government approved scheme abroad with no obligation to buy an annuity and get your pension in the local currency, so there are no worries if the pound drops / local currency strengthens:

http://www.mindfulmoney.co.uk/15430/investing-strategy/qe-and-tax-policies-on-pensions-driving-pensioners-overseas.html

[Lizzie_Zoom]

What are the tax implications though Rods2?

Will the pension taken abroad attract lower taxation now, and through whatever happens in Europe?

 

[Rods2]

What are the tax implications though Rods2?

Will the pension taken abroad attract lower taxation now, and through whatever happens in Europe?

 

This HMRC fact sheet describes the scheme.

http://webarchive.nationalarchives.gov.uk/20120604102110/http://www.hmrc.gov.uk/pensionschemes/appss-m-0312-v1.0.pdf

From the fact sheet:

"A QROPS is an overseas pension scheme that can receive a transfer of the value of
your rights from a UK registered pension scheme without you incurring tax charges.
HM Revenue & Customs (HMRC)requires a QROPS to broadly mirror a UK pension
scheme. This means that if you transfer your pension fund to a QROPS you can still
receive a lump sum and pension when you retire, much as you would expect if you
had kept your pension savings in a UK registered pension scheme. This is subject to
any local laws and tax treatment in the country where the QROPS is established or
the country where you become resident."

[Lizzie_Zoom]

What are the tax implications though Rods2?

Will the pension taken abroad attract lower taxation now, and through whatever happens in Europe?

 

This HMRC fact sheet describes the scheme.

http://webarchive.nationalarchives.gov.uk/20120604102110/http://www.hmrc.gov.uk/pensionschemes/appss-m-0312-v1.0.pdf

From the fact sheet:

"A QROPS is an overseas pension scheme that can receive a transfer of the value of
your rights from a UK registered pension scheme without you incurring tax charges.
HM Revenue & Customs (HMRC)requires a QROPS to broadly mirror a UK pension
scheme. This means that if you transfer your pension fund to a QROPS you can still
receive a lump sum and pension when you retire, much as you would expect if you
had kept your pension savings in a UK registered pension scheme. This is subject to
any local laws and tax treatment in the country where the QROPS is established or
the country where you become resident."

Thanks!

[Rods2]

Are you thinking about Malta when you retire?

[jonathanh]

If you are thinking of this, approach with caution.  Here are the things to worry about

1) why is that fella from deVere Group saying that QROPS are such a good thing?  because they make shedloads of money out of you, probably on comission terms that you have to be a detective to work out.  So the advice is: make sure of the costs of any " advice" and whether they have a vested interest - are they really salesmen in disguise

2) security.  Uk pensions are structured in a very secure way.  other countries are less secure.  investigate what kind of protections exist if there is fraud, the provider goes insolvent etc. 

3) I reckon UK pensions will be raided on tax but whose to say that other european countries will not?  for example Ireland already has a tax ( or levy) on funds in a pension scheme which the Uk does not. 

4) the article is misleading anyway.  QROPS tend to work for high net worth individuals - those who can afford lots of advice and guess what, the advisors get lots of money from.  Anyone in the UK in receipt of a total pension of £20k or more (including state pensions) can draw their private (money purchase) pension pot as a lump sum and does not need to buy an annuity.   any guess what, the high net worth people will have that kind of pension.

I'm not saying I'm against QROPS but they are really niche products and you really need to think around the issues before some " salesmen" stats flogging the latest ideas.  THere are lots of parasites around who will rip people off.

HTH