Posts Tagged: HMRC

Latest QROPS list is revised. Australia drops from top to bottom jurisdiction

Posted by & filed under QROPS list.

QROPS list - July 2015. Huge drop in Australia QROPS providers and Swiss

Her Majesty’s Revenue & Customs (HMRC) have released a heavily updated QROPS list following last month’s suspension. As highlighted at the time the list’s format has changed though the revisions centre around the layout and an extensive cull in the number of qualifying schemes rather than any fundamental alterations. The QROPS list therefore continues to… Read more »

HMRC QROPS list may be dangerous for your wealth

Posted by & filed under QROPS list.

Transferring a UK pension to a provider appearing on the HMRC QROPS list does not confirm you will not be penalised with a hefty tax charge

The HMRC Qualifying Recognised Overseas Pension Schemes (QROPS) list is sometimes mistaken as a seal of approval that a listed pension plan meets all the rules required of it. This implies that it can accept UK pension transfers without a draconian penalty being applied. Furthermore, it can also be mistaken that a pension provider not… Read more »

Don’t fear HMRC’s QROPS list suspension

Posted by & filed under QROPS list.

HMRC lists suspension

  HMRC have confirmed that their ROPS list, previously QROPS list, is currently suspended having not been updated mid-month as expected. They have stated that a new one will be produced for the 1st of July.   This can be viewed as good news despite how it may first appear. The reasoning behind the mid… Read more »

QROPS drawbacks – The downsides of transferring a UK pension abroad

Posted by & filed under QROPS.

Although QROPS offer multiple benefits over their UK pension equivalent they do have drawbacks as well. Following the latest pension amendments these disadvantages are as follows; Only benefits UK pension holders based abroad Not designed for the accumulation of further benefits Any existing pension rights will be lost Costs can exceed alternative options Risk of… Read more »

QROPS – Benefit crystallisation event

Posted by & filed under QROPS.

Are you aware that you can be taxed on your UK pension if it grows too much? Also, that if you reside outside the UK then you can avoid it by transferring your UK pensions into a QROPS? This is due to the rules surrounding benefit crystallisation events and the lifetime allowance (LTA). A major… Read more »

HMRC ROPS list (Prev HMRC QROPS list) – 1st May 2015

Posted by & filed under QROPS, QROPS list.

HMRC have issued their latest ROPS list. Following a clarification in wording it is no longer officially known as the QROPS list though unofficially it appears that nothing has changed with how the lists are composed. As before, QROPS* can self certify for their inclusion whilst other, legitimately qualified pension plans, may decide against being… Read more »

WARNING – HMRC QROPS list is no longer qualified and is now HMRC ROPS list

Posted by & filed under QROPS, QROPS list.

HMRC have altered the wording of their previous QROPS list to clearly highlight that pension plans listed are not qualified and are therefore only Recognised Overseas Pension Schemes (ROPS). Going forward the HMRC QROPS list will now be known as the HMRC ROPS list instead. The fact that the list is not qualified has always been the case… Read more »

UK pension tax relief

Posted by & filed under Pension rules, UK Pensions.

Pensions: Maximum pension contributions. Income < £3,600pa then £3,600 gross or £2,880 net; income < annual allowance then annual allowance gross (entitled to 20% tax rebate on personal allowance contributions; otherwise annual allowance gross. Tax relief at highest marginal rate: 45%, 40% then 20%. Min tax relief is 20% up to maximum limit

Pensions are the most tax efficient savings schemes due to their ability to avoid or delay the payment of tax. It is still important to weigh up the benefits against their drawbacks to ensure that they are the best option for you. There are different methods of claiming tax relief dependent upon your circumstances including; Occupational pension… Read more »

Pensions: Annual allowance tax relief

Posted by & filed under Finance, UK Pensions.

The UK annual allowance is a limit imposed by HMRC on the amount of tax relief available for pension contributions in any one tax year which, for UK tax purposes runs from the 6th of April to the 5th of April the following year. This applies to both defined contribution (money purchase) and defined benefit… Read more »

UK pension rules and regulations

Posted by & filed under Pension rules, UK Pensions.

HMRC rules and regulations governing pensions in the UK fall into three main categories which can be further subdivided. Current pension rules therefore cover the following areas; Retirement age State retirement age Minimum retirement age Tax rules Income tax relief Pension withdrawals Death tax rates Additional rules Pension transfers Free impartial advice Unauthorised payments Retirement… Read more »

Top QROPS benefits following rule changes

Posted by & filed under QROPS, QROPS pension transfers.

QROPS benefits overview which includes areas on consolidation, control, security, tax, and risk. QROPS advantages explained in detail in the article with a link through to QROPS guide downloadable pdf

QROPS (Qualifying Recognised Overseas Pension Schemes) apply HMRC rules in non-UK jurisdictions to offer multiple benefits over their UK pension counterparts. Following the latest pension amendments these advantages are as follows; Higher tax free lump sum (up to 30%) * Pay less income tax Avoid or reduce any lifetime allowance tax charge Investments can grow… Read more »

HMRC QROPS list explained

Posted by & filed under QROPS, QROPS list.

UK pensions can be transferred abroad into Qualifying Recognised Overseas Pension Schemes (QROPS). This allows them to be moved without being subject to an unauthorised payments charge that would otherwise have been due. To be deemed qualifying a QROPS must both be non UK based and follow certain rules set forth by HMRC (Her Majesty’s… Read more »

Defined contribution (money purchase) pension schemes

Posted by & filed under UK Pensions.

These are pensions whose performance is largely dependent on the underlying investments though an employer operated scheme may offer it’s employees certain guarantees in respect to the returns received. Unlike defined benefit schemes this does not extend to guaranteeing their annual retirement income. They are available through both company sourced and privately purchased plans.  … Read more »

Defined benefit (final salary) pension schemes

Posted by & filed under UK Pensions.

Defined benefit pensions, more commonly known as final salary schemes are a form of retirement plan which are/were solely offered by certain employers. They are most prevalent in the public sector, whilst the majority of private sector employees have either never had the opportunity to participate or have witnessed the closing of their scheme. Private… Read more »

QROPS Rules and Regulations

Posted by & filed under Pension rules, QROPS.

QROPS Rules - Retirement is not allowed before 55, no inheritance tax, death tax or income withdrawal limit so you have full flexibility

QROPS are mandated to follow HMRC rules & regulations. Failure to do so may result in the pension being delisted and losing any associated tax breaks. HMRC’s QROPS list has recently been amended to clarify that a pension scheme’s inclusion does not guarantee that it is qualified. According to the rules though, a QROPS scheme is under… Read more »

QROPS Pension Transfer Guide

Posted by & filed under QROPS, QROPS pension transfers.

Qualified Recognised Overseas Pension Schemes (QROPS) are HMRC approved UK pensions based abroad. They are available to those who hold UK registered pensions but no longer reside in the United Kingdom, irrespective of their nationality. Why transfer your pensions abroad? QROPS advantages range from being liable for less tax to higher levels of security. Weighing these up… Read more »

Qualifying Recognised Overseas Pension Scheme (QROPS) Explained

Posted by & filed under Pension rules, QROPS, QROPS jurisdictions, QROPS list, QROPS pension transfers, QROPS providers, UK Pensions.

QROPS Pension transfer

  QROPS pension transfers can allow you to benefit from holding a UK pension overseas. What follows is all you require to know about QROPS including; What QROPS are How is qualifying status achieved When they were introduced QROPS benefits QROPS potential drawbacks Why they differ to UK schemes QROPS vs SIPPs Rules and regulations… Read more »

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