Since 6th April 2006, also known as Pension ‘A’ day, people with UK pensions who are, or will become, non-resident in the UK for tax purposes have been able to move their pension benefits out of their UK scheme to a QROPS. These simplified rules can prove highly advantageous for many reasons and have been fully noted in our benefits section.

The primary focus of a QROPS is to provide expatriates with a retirement option that fits their international lifestyle and reduces their exposure to unnecessary tax charges.

Due to the UK’s high regulation of pensions the QROP scheme must meet stringent criteria set out by HM Revenue and Customs (HMRC) and act, in some ways, as if it were a UK scheme I.e. benefits to be taken at pensionable age of 55 and a pension commencement lump sum (PCLS) can be taken. However, upon reading, the advantages of the arrangement can be very significant for expatriates including: Increased Pension Commencement Lump Sum (PCLS), minimised income tax, mitigated inheritance tax and so on.

In order to be an eligible scheme, the QROPS must be fully approved by HMRC, a list of such schemes can be found here.

For many UK expatriates and foreign nationals a QROPS is the perfect tax efficient and flexible investment retirement vehicle, but to make certain it is suitable for you a full pension review would need to be carried out with your adviser. Please contact us for more information and to arrange a free of charge pension analysis.