QROPS (Qualified Recognised Overseas Pension Scheme)
These types of schemes have been developed with the recent changes in UK pension legislation in mind and the need for schemes to be ‘recognised’ by Her Majesty’s Revenue and Customs (‘HMRC’)
Individuals generally may have been members of an Employer Sponsored Pension Scheme or Personal Pension arrangement pre 6th April 2006, commonly known as ‘A-day’. Transferring these schemes into a QROPS provides tax neutrality, a wide range of options and greater flexibility.
Post A-Day schemes are more complex as they have very few transfer options and care must be taken to ensure that a transfer does not trigger chargeable and benefit crystallization events.
The QROPS is designed to enable non UK resident individuals or individuals who are about to leave, who have accrued pension benefits in the UK, to transfer these out. In order to be in a position to receive transfers from authorised UK pension schemes, the Plan needs to be registered as a QROPS with HMRC.
The QROPS is a retirement scheme and is therefore designed to provide for one’s retirement with defined retirement/termination events as follows:
- Normal Retirement Age of 65;
- Early Retirement Age of 50;
- Death & Permanent Disability;
However there may be greater flexibility, determined by an individual’s circumstances, which will need to be considered on a case by case basis.
If you would would like to find out more about QROPS and to discuss your options with a qualified QROPS consultant then please complete our enquiry form and we will contact.