HMRC introduced QROPS (Qualifying Recognised Overseas Pension Scheme) and QNUPS (Qualifying Non UK Pension Scheme) allowing individuals to benefit from pension transfers or expatriate pensioners to contribute to a pension scheme. For example, under QROPS individuals are able to transfer their existing UK scheme to a HMRC approved non UK pension.
Gibraltar - QROPS/QNUPS
In addition to reviewing your tax position, anyone leaving the UK and becoming non UK tax resident should also perform a review of their financial affairs. An example of this is performing a review of their pension arrangements.
QROPS
A Qualifying Recognized Overseas Pension Scheme (QROPS) allows anyone with a UK registered pension who is living outside the UK, or is intending to leave the UK, to transfer their pension overseas, under HMRC’s QROPS Provisions.
A QROPS plan may not only be more tax effective than keeping your pension in the UK, but, it also allows for more flexible investment options including a wide scope of currencies, commodities and markets.
Many expatriates have taken advantage of the QROPS Provisions; in fact since it was launched in 2006 over 20,000 pensions have been transferred from the UK into QROPS arrangements. Figures released show that QROPS investors save approximately £1 million a day in taxes that would go to the HM Revenue and Customs if the same money was left in a UK Pension.
QNUPS
QNUPS stands for Qualifying Non UK Pension Scheme. The term was brought about in February 2010 when the UK government announced that certain types of overseas pension schemes were exempt from UK inheritance tax.
The “Qualifying” part of that definition means that the overseas pension scheme must meet HMRC’s specific criteria for pension schemes that will not attract IHT. The schemes must be based overseas, and need not be in countries that have signed Double Taxation Agreements with the United Kingdom.
QNUPS are exempt from UK inheritance tax, so their major draw is that they enable savers to pass on their assets free from death duties to their heirs.
But there are other reasons to get a QNUPS. Unlike some other pension schemes, QNUPS can accept money that has not been earned in employment. There is also no lifetime contribution for QNUPS, and nor is there any maximum age at which you can make payments into the scheme.
If you require further information or a formal financial review please do not hesitate to contact us or write directly to Robert Mancera of Blacktower Financial Management Group at Robert.Mancera@blacktowerfm.com who will be able to give you formal advice directly.