Posts Tagged: Rules and regulations

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 »

Early retirement – accessing your UK pension before 55

Posted by & filed under QROPS.

Would you like a way to retire early? Have you even considered the possibility of withdrawing money out of your pension before the state rules permit? For those based overseas, you may have heard that one benefit of transferring your pension abroad into a QROPS is the ability to do exactly this.   To explain,… 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: Lifetime Allowance (LTA)

Posted by & filed under Finance, UK Pensions.

The UK Lifetime Allowance (LTA) is a limit imposed by HMRC on the total accumulated pension anyone is entitled to before tax relief is reclaimed. There are different factors that may apply to you; Brief history Lifetime allowance limit How is it measured Benefit crystallisation event Protection Primary protection Enhanced protection Fixed protection Individual protection… 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 »

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 Rule Changes May Provide Another Advantage…

Posted by & filed under Pension rules, QROPS, QROPS pension transfers.

Qualified Recognised Overseas Pension Schemes (QROPS) have the potential to benefit from similar pension changes afforded to UK based policies announced in the 2014 UK budget. At this point, HMRC are in a consultation process so there still remains uncertainty around exactly how pension law will be amended for QROPS. What follows is based on… Read more »

UK Death Tax Changes 2014

Posted by & filed under Pension rules, UK Pensions.

UK pension rules are expected to undergo further changes following George Osborne’s recent announcement at the Conservative conference. These changes are likely to to be confirmed in the autumn statement (3rd December 2014) and subsequently enacted from April 2015. This has now come to pass. Following major pension changes announced in the 2014 UK budget… 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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