QROPS FAQ ‘s

Generally speaking it is appropriate to consider transferring your pension into a QROPS if you are living outside the UK and it is not your intention to return. The reason for this is that after you have been non UK resident for 5 full tax years, the trustees of a QROPS scheme do not have to report income taken from a QROPS to HMRC.

Yes. Again subject to the five . year rule given above, tax free cash of up to 30% can be taken from your QROPS fund.

No. There is never any obligation to buy an annuity within a QROPS, even after the age of 75.

No. After you have been non UK resident for five full tax years, there is no longer any requirement to report any income to HMRC, and therefore income taken from a QROPS will typically be subject to taxation at local rates of income tax, which can be substantially lower than those applicable in the UK.

This depends upon the transferring scheme but typically the transfer process should take no longer than 4 weeks.

As the QROPS market becomes more competitive costs are generally reducing and current costs are typically around 0.5% of fund value as a set up charge and also as an ongoing management charge, which looks very favourable when placed into the context of the considerable advantages transfer into a QROPS can offer.

As the QROPS market becomes more competitive costs are generally reducing and current costs are typically around 0.5% of fund value as a set up charge and also as an ongoing management charge, which looks very favourable when placed into the context of the considerable advantages transfer into a QROPS can offer.

Occupational schemes and personal pensions, stakeholder pensions, retirement annuities, executive pensions, SIPPs and SSASs can be transferred into a QROPS, although would stress the importance of receiving professional advice as to whether it is appropriate to transfer in each individual case. The only situations in which it is not possible to transfer to a QROPS are where an annuity is being taken, where benefits are being taken from a final salary scheme, or State pensions.

Absolutely and in fact this is where transfer to a QROPS can be highly beneficial, as income will be subject to tax at local rates and death benefits will not be subject to a 55% tax charge.

Transfer to a QROPS would constitute a crystallisation event for Lifetime Allowance purposes, and therefore excess funds over the Lifetime Allowance could be subject to a tax charge upon transfer to a QROPS.

However this would not apply if transitional protection has effected.

In addition there is no Lifetime Allowance charge applicable to a QROPS and therefore avoidance of this charge could be a justifiable reason to transfer should your fund be close in value to the Lifetime Allowance ( which is to be reduced to £1,500,000 from April 2012).

Age 55 as from 6th April 2010.

Yes. QROPS schemes permit a wide range of investments including equities, gilts, corporate bonds, property, hedge funds commodities, structured products and capital guaranteed investments. 

These investments can be worldwide and can be denominated in a range of currencies.

No. The reason for this is that all QROPS providers will only accept applications via financial advisers, as QROPS advice is a complex area that requires specialist advice.