QROPS
FirstRand Trustees has recently launched a Qualifying Recognised Offshore Pension Scheme (QROPS) under the banner of The Plaiderie Pension Scheme.
What is a Qualifying Recognised Offshore Pension Scheme (QROPS)?
In April 2006, the UK tax authorities (HMRC) amended their pension legislation to allow British expatriates to transfer accrued UK pension benefits to a Scheme that was recognised by HMRC as being QROPS approved. In essence, this means that the terms of the QROPS Scheme adhere to certain requirements set out by HMRC, the most important of which is that a minimum of 70% must be maintained within the Scheme to provide a pension for life.
The Benefits
You do not have to buy an annuity. This avoids having to lock into a potentially poor return.
- You can instead draw down an income.
- On death, the remaining fund is available for transfer to your chosen beneficiaries.
- Up to 25% can be taken as a lump sum on your chosen retirement date.
- Funds in the Scheme are not subject to any tax at source, thereby avoiding UK tax being applied to your UK pension scheme.
Who can transfer their pension into The Plaiderie Pension Scheme?
The Scheme is open to anybody whether resident of Guernsey or not. The Scheme will be particularly attractive for individuals who are not resident in the UK and do not intend to return. Other nationals who have worked in the UK and have accumulated a UK pension scheme can also benefit.
What assets can be transferred to a QROPS?
Most UK pension schemes other than the State pension can be transferred to a QROPS.
What is the retirement date?
The retirement date can usually be any time between your 50th birthday up to your 75th birthday.
What are the reporting requirements?
Any distributions made to a member for the first five years after becoming non UK resident must be reported to HMRC.
What are the investment options?
The Plaiderie Pension Scheme does not place any limitations on the choice of investments under the Scheme. This allows greater flexibility for the Scheme member to work with their chosen financial adviser to choose the most suitable investment option for their individual requirements.
Appointment of Advisers
You may nominate your own financial adviser. If you do not have one, we will be happy to introduce you to our sister company, FirstRand Private Wealth Management, a licensed financial adviser based in Jersey.
Independent Advice
FirstRand Trustees Limited as administrator of The Plaiderie Pension Scheme is not authorised to provide any legal, tax or other advice in respect of the suitability of the Scheme for each individual member. Each individual member is strongly advised to obtain suitable advice prior to entering into or arranging any transfer to a QROPS.
