With the Brexit tidal wave nearing fast there has been a notable rise in the number of people looking for low cost HMRC QROPS pension solutions. QROPS stands for Qualifying Recognised Overseas (offshore) Pension Schemes. In recent years these have adjusted inline with the UK’s changes in pension legislation. It has never been more liberated and so flexible.
The Advent of Low Cost QROPS
Increased consumer demand often results in a more competitive environment for any company intent on supplying that demand. Before those with more modest pensions (less than 100,000 a year) could not afford the yearly fees attached to having a QROPS pension. However, due to demand, necessity and changing legislation the advent of low cost QROPS is here. Are they worth it? According to most professionals the answer to that is “yes” – Something is better than nothing as they say…
QROPS Low Cost Pension
Low cost QROPS pensions are designed to reduce the initial cost of transferring the pension as well as the yearly fees. Competition has made some companies very innovative and there are some very cost-effective solutions available – Anywhere from around three hundred pounds for the initial transfer and around five hundred annual fees. You ae advised to see QROPS specialist advice before taking action. The low-cost version has some restrictions; a maximum transfer limit of one hundred thousand for example. Pensions of under fifty thousand can be transferred although these will have more restrictions.
A qualified QROPS is one that is recognised by the UK Government and so eligible for transfer. These countries provide equal to or better consumer protection than the UK. Invariably, reputable pension advisors would not suggest transferring to countries without good consumer protection. Therefore, qualified QROPS are the least risky.
Deferred company and personal pensions can be transferred to QROPS by people inside or outside the UK. If the annuity has been purchased it cannot be transferred. If the pension is a “final salary” scheme it can only be transferred if payments have not begun. If the pensioner has not lived in the UK for five years consecutively they may not be considered resident, which can change the tax rules. HMRC place no restrictions on how income or capital is spent.
Don’t Miss Out
HMRC QROPS Pensions can offer a range of solutions. An advisor can help you benefit from increased currency options, better tax treatment on any inheritance, as well as circumventing taxes such as the Lifetime Allowance Charge. There is uncertainty with regards to the affect Brexit will have, which is why many people are reassessing their pension position right now. Make the most of the increased demand and latest shift which has opened doors to more people than ever. If you are looking for a low cost QROPS, there are affordable solutions out there. Don’t miss out and keep putting it off. The clock is always ticking.