QROPS – a flexible pension solution

Are you looking for a flexible answer for your pension problems? If so why not consider a QROPS? As an expat you may have left an old pension behind in the UK without really considering that it may be possible to transfer it to an overseas scheme.

The reason that most people consider a QROPS is usually tax. By transferring the scheme outside of the UK into a HMRC approved scheme, the pension can be removed from the UK free from UK income tax. The pension assets that you have accumulated when you die can even be transferred to your beneficiaries free from UK inheritance tax.

Freedom to invest wherever you want

If you do decide to go down the QROPS route you may have to check that the scheme is actually one that has been checked and verified by HMRC. Most of the approved schemes are on their website, but some may not be.

A quick glance at the HMRC list reveals that there are over 1,000 schemes for you to choose from. Accordingly, you have access to a wide range of options spread in countries around the world.

Not only can you choose the country that you wish to invest in (as your QROPS does not have to be based in the same nation as you), but you may also find that you have a wider range of underlying assets for your QROPS to hold.

Freedom to take benefits

Whilst you may not be able to take a lump sum from a QROPS before the age of 55, when you are allowed to take one you may be able to take a larger amount than is permitted in the UK. You may also be able to have more flexibility about when to take an income.

A QROPS may also be an opportunity to consolidate a number of pensions into one place, which may offer the chance to maximise the tax advantages that such a scheme offers.