November 21st, 2012

Published by: iExpats.com

QROPS Articles May 2012 - iExpats.com

This is a collection of all the articles about QROPS from iExpats.com in May 2012
the basic QROPS structure is should be the same between providers and financial centres as the rules are laid down by the UK HM Revenue & Customs. Related posts: I am looking in to transfering my pension in to a Malta based QROPS scheme. I believe that there are only a few to choose from, Im interested in what companys are due to open and start offering new schemes All QROPS are only protected from tax on death if member is 5 yrs plus non-UK resident. And tax on pensions is not actually IHT anyway. 30% cash can only be taken at retirement age. Lots of errors and omissions here. The IRS has pushed back the start date of FATCA the Foreign Account Compliance Tax Act from Janu...

Malta QROPS
Source: http://www.iexpats.com/2012/05/malta-qrops/ November 21st, 2012

Malta QROPS are flexible, tax effective offshore pension plans for British ex pats and international workers with UK pension rights. A QROPS short for qualifying recognised overseas pension accepts tax-relieved transfers from the UK for permanent non-residents. Malta is one of many countries and territories offering QROPS, but has the added benefit of being a full member of the European Union and close historical ties with the UK. HM Revenue & Customs does not limit Malta QROPS to retirement savers living on the Mediterranean island providing the pension meets the rules governing tax incentives and benefits paid to Maltese residents and non-residents, a QROPS investor can live where they wish. Flexible investments A QROPS offers a broad range of investment options in currencies, commodities and platforms that far surpass those of standard UK pension plans Efficient tax treatment Investments grow free of income tax and capital gains tax within a QROPS Tax-free lump sum QROPS rules ring fence 70% of any tax-relieved funs transferred in for paying pension benefits on retirement the remaining 30% can be withdrawn tax free. Further drawdowns are sometimes possible with Malta QROPS. Estate planning and succession solutions QROPS pension funds are outside of the grasp of the UK tax man for inheritance tax Currency exchange rate protection QROPS pension benefits can be paid in one of a number of major nominated currencies, including Sterling, US dollars and Euros. Dont forget QROPS terms like minimum investments, available funds and charges will vary between providers but

Gibraltar QROPS set to rock offshore pensions market

Source: http://www.iexpats.com/2012/05/gibraltar-qrops-set-to-rockoffshore-pensions-market/ November 21st, 2012

Guernsey QROPS providers facing a rocky future are looking towards Gibraltar to save their businesses. Financial firms are eyeing the progress of new draft qualified recognised overseas pension schemes (QROPS) laws through the countrys parliament. The government expects the bill to pass in to law around the end of June to open the door on UK pension transfers for expats and international workers with UK pension rights. The new laws provide a 2.5% tax rate on pension payments, which resolves HMRC issues with retirement savers paying tax on Gibraltar QROPS Gibraltar QROPS have several advantages for providers and retirement savers leaving the UK permanently who are seeking a tax-efficient place for their pension funds to grow. Pension providers have already announced their intention to base QROPS in Gibraltar. They favour the country, because unlike Guernsey, Jersey and the Isle of Man, financial regulators follow European Union guidelines that are less likely to see objections raised by HM Revenue & Customs about alleged tax abuse.
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November 21st, 2012

Published by: iExpats.com

Malta is another European Union compliant financial centre looking to offer more QROPS pensions for British expats. Gibraltar hosts10 QROPS schemes and the industry is largely unaffected by the recent tax shake-up that saw hundreds of schemes removed from HMRCs official QROPS listing with most of the pulled schemes coming from Guernsey (304), New Zealand (41) and the Isle of Man (18). Although HMRC and the Guernsey tax authority are discussing how to resurrect the Channel Islands multibillion QROPS industry that reputedly attracted one in three of every offshore pension transfer made in 2012, it is unlikely that any changes are imminent. The Guernsey government would probably have to draft and pass new laws to smooth the way for most providers to reopen for QROPS transfers. Related posts: The IRS has pushed back the start date of FATCA the Foreign Account Compliance Tax Act from Janu...

Pension providers in Guernsey have complained the action singled out the Channel Islands QROPS and have threatened legal action against HMRC. Guernsey had reportedly become the worlds largest offshore financial centre offering QROPS pensions to expats and international workers with UK pension rights. Industry insiders estimate at least one in three of all QROPS transfers out of the UK went to the island. Guernsey Finance, the trade body for the QROPS providers, also claims up to 200 jobs are at risk if the pensions are lost to the islands financial institutions. QROPS is short for qualifying recognised overseas pension, which is a scheme that allows pension funds to be transferred from the UK to one of around 2,600 QROPS in 49 countries. Related posts: The IRS has pushed back the start date of FATCA the Foreign Account Compliance Tax Act from Janu...

HMRC ignores plea to reinstate Guernsey QROPS

Source: http://www.iexpats.com/2012/05/hmrc-ignores-plea-to-reinstateguernsey-qrops/ November 21st, 2012

Expats shouldnt worry about QROPS pensions, says HMRC

Source: http://www.iexpats.com/2012/05/expats-shouldnt-worry-aboutqrops-pensions-says-hmrc/ November 21st, 2012

HM Revenue & Customs has blocked fresh moves by Guernsey QROPS providers to reinstate pensions for retirement savers who do not live on the island. Guernseys director of taxes, Rob Gray, has revealed officials from the Channel Islands tax office and HMRC have had talks aimed at clearing up problems that led to the axing of 300 pension schemes for offshore residents. Senior officials met for two-hours to thrash out the issue without any agreement, confirmed Gray. His view was HMRC did not want to allow Guernsey QROPS to open to retirement savers living off the island, but would green light QROPS for Guernsey residents. New QROPS rules specifically blocking Guernseys S157E QROPS for off-islanders come in to force today (May 23, 2012). The S157E pension was hastily drafted and passed by the islands parliament to meet tough new tax rules aimed at halting QROPS tax abuse. Guernsey was effectively closed to new QROPS business by the deletion of more than 300 QROPS schemes from HMRCs QROPS list published in April 2012, leaving just three trading. This was followed by the rules banning S157E pensions.

The latest round of offshore pension tax changes has left many expats concerned over the safety of their money locked in overseas pensions. Thousands of expats and international workers with UK pension rights had shifted their funds out of Britain to qualifying recognised overseas pensions QROPS for short only to find hundreds of schemes were outlawed by the UK tax authorities. QROPS are special offshore pensions that let UK retirement savers port their funds abroad when permanently leaving the UK. The QROPS industry was also concerned that third-party QROPS might be banned as well, leaving the retirement plans for many in disarray. A third party scheme is when an expat lives in one country but has a QROPS based in another. For instance, an expat in Dubai may have transferred UK pension funds to a QROPS in Guernsey. HM Revenue & Customs (HMRC) has moved quickly to quell rumours about QROPS pensions and explained third party QROPS are not illegal.

November 21st, 2012

Published by: iExpats.com

QROPS were not intended to be used as a method of converting existing pension savings into a lump sum or escaping taxation on pension savings, said an HMRC spokesman. An individual can move their UK pension savings to a pension scheme established in another country which is different to the one in which they are resident. HMRC has also confirmed that the UK government has no issue with QROPS schemes only the way some providers run them. To push the point home, HMRC has issued another round of tax rules aimed at Guernsey QROPS. From May 23, 2012, Guernseys S157E pensions are not recognised as QROPS and cannot accept transfers from a UK registered pension scheme. Despite the action against Guernsey providers, QROPS investors still have more than 2,600 pension schemes to choose from in 49 countries. HMRC has also pledged that any offshore pensions qualifying as QROPS on April 6, 2012, when the revised tax rules came in to force, can continue to hold funds without penalty, but they may not accept transfers if they do not meet the new rules. Related posts: The IRS has pushed back the start date of FATCA the Foreign Account Compliance Tax Act from Janu...

It says: This measure will ensure a fairer tax system by making changes to the system of transfers of pension savings from registered pension schemes to QROPS. This will ensure that the system continues to be used for its intended purpose of allowing individuals who intend to leave the UK permanently to take their pension savings with them, free of UK tax, to their new country of residence in order to continue saving to provide an income in their retirement. Many so-called experts have wrongly suggested this phrase means QROPS investors can only set up a pension in the country where they are resident. HMRC explains that the current QROPS policy is set out in the TIIN. QROPS were not intended to be used as a method of converting existing pension savings into a lump sum or escaping taxation on pension savings, said an HMRC spokesman. An individual can move their UK pension savings to a pension scheme established in another country which is different to the one in which they are resident. The answer helps retirement savers looking at transferring their UK pensions to a QROPS. Malta QROPS are tipped as the main beneficiaries of third party schemes due to strict regulation and tax relationships with other countries as a member of the European Union. Related posts: The IRS has pushed back the start date of FATCA the Foreign Account Compliance Tax Act from Janu...

QROPS, third party scheme are not banned, says HMRC

Source: http://www.iexpats.com/2012/05/qrops-third-party-schemes-arenot-banned-says-hmrc/ November 21st, 2012

Reports of the death of third party QROPS are greatly exaggerated and the offshore pension scheme for expats and international workers is far from dead and buried, according to the UK tax man. iExpats.com has specifically asked HMRC whether policy has changed to ban third party QROPS. Third party QROPS is the term the offshore pension industry gives to qualifying recognised overseas pension schemes based in one country when the retirement saver lives in another. For instance, many expats have a pension hosted on Guernsey when they live in Spain or one of the Middle East Gulf countries. The confusion and misinformation in the pensions industry comes from a comment in the latest tax information and impact note (TIIN) concerning QROPS from HMRC.