A QROPS pension scheme is an excellent option for anyone with a UK pension who is living, or planning to live abroad. As well as offering great flexibility, a Qualifying Recognised Overseas Pension Scheme provides significant tax and investment advantages, allowing UK pension holders to get more out of their pension.

Some of the major QROPS Benefits include the following:

• Greater control - more control over where your pension fund is invested
• Tax efficient - Substantial tax reductions when you access your pension
• Inheritance benefits - pass the fund to your beneficiaries, free from UK Inheritance Tax
• No annuity - you never have to buy an annuity within a QROPS

The option to transfer your pension into a QROPS means that you can pay lower tax on income drawn, you can avoid being forced to invest capital in an annuity which dies with the purchaser and you can also pass your wealth to friends and family free of tax upon death.

It is possible to receive valuable tax reliefs while working and saving toward retirement in the United Kingdom, without needing to pay higher taxes when you draw benefits or submit to UK restrictions on how you invest and spend the fund.

People who are living inside or outside the UK can transfer their deferred company and personal pensions to a QROPS. Most pensions can be transferred as long as an annuity has not been purchased.

Better still, where the pensioner has not been resident in the UK for five complete and consecutive fiscal years, HMRC restrictions on how income and capital are spent no longer apply. In short, a Qualifying Recognised Overseas Pension Scheme can enable savers to enjoy the best of both worlds.

HMRC restrictions on how income and capital are spent no longer apply. As set out in Clause 2 Schedule 34 of the Finance Act 2004, there is no need to report what HMRC would regard as “unauthorised payments” and tax of up to 82% that might be levied on such payments in the UK can be avoided.

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